Why Provision 29 is raising the bar for board accountability
Brief
By Tim Williams, CEO at Quod Orbis
Under the 2024 UK Corporate Governance Code, the revised Provision 29 requires boards to demonstrate that their material internal controls are working effectively. Every business has hundreds of controls, however material controls have the potential to create an immense operational, security or regulatory impact.
The message behind this latest update is that it’s no longer enough to be compliant on paper, and boards – now more than ever – must provide consistent evidence that is timely, accurate, reliable and capable of surfacing risks.
In the past, it was easier for businesses to claim they had good internal controls, but Provision 29 has changed the game. It calls for businesses to maintain assurance that their controls work across finance, compliance and reporting, and be able to validate their claims with real-time, accurate data.