Transforming Risk and Compliance: Tools for a Business Centric Approach

Authored by Himashi Cameron

In the past year,

• 40% of Owl Advisory’s work occurred following an ASIC inquiry to the client,

• 20% of client work supported risk and compliance transformation programmes, and

• 10% of client work involved advisory support as part of BAU risk and compliance management.

Most organisations strive for robust compliance management, but how often is this objective truly realised? For many, it remains an ongoing challenge.

Through our client conversations at Owl Advisory we’ve identified various factors contributing to the diverse landscape of governance, risk and compliance management across Australian companies. Recurring themes include:

• Many organisations are struggling with outdated technology and insufficient resources to effectively oversee compliance and risk management.

• Senior Executives are facing evolving regulatory expectations, shifting from compliance as a formality to focusing on non-financial risk management and integrating risk management into business decisions.

• Companies that have implemented the 3 Lines of Defence model can lack clarity on how to tailor it to their specific organisational structure.

• Challenges in balancing the resources needed for control monitoring with the volume of monitoring required and the need to define effective monitoring strategies.

  
  

Many are overwhelmed at the sheer volume of regulatory obligations and potentially lack the risk management skills and experience to keep policies up to date. The list is long of the very practical challenges of good governance and demonstratable compliance and risk management faced by licensed and non-licensed entities.

The Shift from Spreadsheets to Purpose-Built Risk Platforms

One of the most noticeable trends we've seen over the past year is the steady decline in clients relying solely on spreadsheets to manage their risk and compliance obligations. Increasingly, organisations, big and medium are adopting dedicated platforms to handle these critical functions.

For many, the focus has been on implementing Governance, Risk, and Compliance (GRC) platforms that prioritise issue management, with an eye toward supporting obligations management as well.

Additionally, we are witnessing a growing number of organisations moving beyond traditional GRC solutions to adopt broader organisational and process management tools.

Solutions like Holocentric Connect with Owl Advisory (a solution designed in collaboration with Holocentric) or competitor products such as ARIS offer a more business-centric approach to managing non-financial risk. These tools are superior for capturing and digitising business processes, controls, obligations, and policies—providing an integrated view of compliance and operational risk, ensuring that compliance considerations are integral to the business development process. By leveraging these advanced tools, organisations can take their business and Line 1 stakeholders on a collaborative journey, ultimately enhancing value while fostering a culture of compliance that aligns with strategic objectives.

This evolution reflects corporate Australia’s increasing recognition of the complexity of managing governance, risk and compliance — and that teams require tools that are fit for purpose, scalable, and seamlessly integrated into the fabric of day-to-day business operations.

To discuss your obligations management needs – or to schedule a demo of Holocentric Connect with Owl Advisory - please contact General Manager Himashi Cameron or Director and KWM Partner  Tim Bednall.

This publication is a joint publication from King & Wood Mallesons, and KWM Compliance Pty Ltd (ACN 672 547 027) trading as Owl Advisory by KWM.   KWM Compliance Pty Ltd is a company wholly owned by the King & Wood Mallesons Australian partnership.  KWM Compliance Pty Ltd provides non-legal compliance and governance risk advisory services for businesses.  KWM Compliance Pty Ltd is not an incorporated legal practice and does not provide legal services. Laws concerning the provision of legal services do not apply to KWM Compliance Pty Ltd.