Survey: Organisations Prepare for UK Corporate Governance Code Reforms to Drive Business Value

Key findings include navigation of AI and resource allocation as the most critical topics in advance of 2024 regulations.

LONDON--(BUSINESS WIRE)--AuditBoard, the leading cloud-based platform transforming audit, risk, compliance, and ESG management, today announced the results of a new research report, UK Corporate Governance: Turning Compliance into a Strategic Advantage. The survey found that 88 percent of audit, risk, and compliance professionals surveyed view conformance with the UK Corporate Governance Code reforms as a high priority for 2024, with the greatest urgency in the industrial and technology sectors.

With the latest reform to the code set to go into effect on 1st January 2025, organisations across industries are grappling with the imperative to align their governance practices with the new standards. By proactively embracing the updated code, companies can leverage the reforms to improve overall business performance by building resilience and differentiating themselves in the marketplace.

The report examines how organisations are planning, implementing, and managing efforts to comply with the UK Corporate Governance Code revisions. Key findings include:

• Internal Gaps in Prioritisation and Confidence: Executives feel more strongly about the importance of conformance than respondents in management roles, revealing a potential disconnect that could hinder effective implementation. Meanwhile, 86 percent of organisations are confident they will conform by 2026, however, those in regulatory compliance roles are less confident than their ESG and internal controls counterparts.
• Increased Workload Impacts Resource Allocation: 89 percent of professionals expect an increased workload due to the new governance code reforms, with those already in conformance reporting the most significant burden.
• Widespread Use of AI in Governance: Over half of the organisations surveyed already use AI to support their risk and control programmes, particularly for automated control testing and trend insights, illustrating the growing role of technology in governance.

“As the UK Corporate Governance Code approaches, companies should view the updated Code as more than a checklist item,” said Jason Sechrist, EMEA Director of Product Solutions. “It's a chance to improve their internal control systems, enhance strategic decision-making, and build a more resilient organisation. By adopting a standardised approach to risk and control management, businesses will satisfy regulatory requirements and position themselves for competitive advantage and long-term success in an increasingly complex and competitive environment.”

For more information about what companies are doing to prepare for the UK Corporate Governance Code reforms, read the full report here.

Methodology

AuditBoard, in partnership with Ascend2 Research, developed a custom online questionnaire to survey 264 internal audit professionals and organisational leaders working for enterprise organisations with over $25M in revenue across varying industries in the United Kingdom. All survey participants were in managerial roles or above and represented various departments in their organisations. The survey was fielded in July 2024.

About AuditBoard

AuditBoard is the leading cloud-based platform transforming audit, risk, compliance, and ESG compliance management. Nearly 50% of the Fortune 500 leverage AuditBoard to move their businesses forward with greater clarity and agility. AuditBoard is top-rated by customers on G2, Capterra, and Gartner Peer Insights, and was recently ranked for the fifth year in a row as one of the fastest-growing technology companies in North America by Deloitte. To learn more, visit: AuditBoard.com.