Corporate governance risks are increasing, driven by new laws that demand stronger board oversight, the growing impact of cyber threats, and the rapid emergence of AI.
Boards are now expected to manage environmental and social risks, respond to evolving regulatory requirements, and strengthen capabilities in areas such as cybersecurity.
Even not-for-profit organisations, including community sporting clubs, are feeling the pressure, facing legal and reputational risks stemming from leadership disputes and defamation claims.
If these challenges are on your radar, view key insights from our Future Proof '25 report, or download the full report below.
Cain Jackson Managing Partner, Clients and Markets +61 3 9604 7901 cain.jackson@wottonkearney.com
Samantha Younane Special Counsel / Legal & Technical Insights Lead +61 3 9604 7941 samantha.younane@wottonkearney.com
3 standout insights on corporate governance
Boardroom accountability: A sharper focus under new reforms
A wave of recent reforms is reshaping board-level responsibilities. The Financial Accountability Regime and CPS 230 have both taken effect, requiring directors to demonstrate stronger oversight of operational risks.
This includes managing cyber resilience, system outages, and compliance failures. These reforms reflect a broader regulatory trend: shifting accountability upward and giving regulators sharper enforcement tools to respond to governance lapses.
Climate disclosure rules: A regulatory paradox for global boards
Boards are being pulled in different directions as climate regulation tightens locally and loosens abroad. While Australia prepares for mandatory climate-related financial disclosures from 2025, the return of a Trump administration in the US has prompted ESG regulatory rollbacks.
For companies with cross-border operations, this creates a governance dilemma. Boards must remain engaged on environmental and social risks, with silence or inaction still carrying reputational and legal consequences.
AI in the boardroom: Governance catches up to innovation
AI is rapidly moving onto the board agenda. While it brings clear benefits, like automation, cost savings, and innovation, it also introduces complex risks, including bias, data privacy breaches, and opaque decision-making.
Boards are expected to actively govern AI through clear policies, regular risk assessments, and defined accountability for outcomes. As legal and ethical standards continue to evolve, staying informed will be critical to ensuring responsible and resilient AI oversight.
“Well-governed institutions are likely to be more resilient in times of stress. Poor governance creates weakness, which can crystallise in misconduct, losses and failures.”
Australian Prudential Regulatory Authority, 2025
CPS 230 compliance has officially commenced. Is your organisation ready?
APRA’s new CPS 230 – Operational Risk Management standard marks a significant shift in how financial services entities must approach operational risk, third-party arrangements, and business continuity. From July 2025, organisations face a complex and time-critical compliance journey.
We've created a hub that brings together our latest insights, practical guidance, and legal perspectives to help you confidently meet the obligations under CPS 230 – while strengthening your resilience and protecting your customers. Whether you're assessing your risk frameworks, updating contracts, or preparing board reporting, our experts are here to support you at every stage.
Click here to find out more.
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