The last year has provided directors with considerable food for thought in terms of how they should fulfil their governance responsibilities. Boards continue to grapple with significant uncertainties, such as the management of risks relating to cybersecurity, digitalisation, data security, the supply chain and the uniquely uncertain political environment.
Furthermore, a range of new governance requirements and best practices for directors have been published and must now be digested and applied, including a new edition of the UK Corporate Governance Code, the brand new Wates Corporate Governance Principles for Large Private Companies and an updated edition of the Chartered Institute of Internal Auditors/IoD’s own guide to how boards and audit committees should optimise their relationship with internal audit: ‘Harnessing the power of internal audit: A guide for audit committees, non-executive directors and senior management’.
This think piece offers some reflections for directors, particularly in terms of how they can take forward their relationship with internal audit in the current business environment, learning both from the past and looking to the future.
Watch our interview with Charlotte Valeur, Chair of the IoD, for some key insights on the importance of corporate governance and setting the tone from the top.