Corporate governance requirements continue to evolve and expectations around internal control effectiveness are rising. Recent regulatory updates have moved the focus beyond high level statements toward clear evidence consistency and accountability. From 2026 onward boards will be expected to formally confirm whether their material controls are operating effectively.
While this requirement sets the context it is not the real driver of change. Many organisations are already reassessing how their internal controls function in day to day operations. This creates an opportunity to look past compliance and focus on the wider business value that effective controls can deliver.
At its core the case for stronger internal controls is straightforward. Well designed controls reduce risk improve decision making and strengthen trust across the organisation. In many cases they also help lower costs by removing inefficiencies and rework.
Framing the value for different stakeholders
A single internal controls programme can deliver different benefits depending on the audience. Successful business cases recognise these perspectives and address them directly.
Leadership teams
Senior leaders want confidence that the data supporting strategic decisions is reliable. Effective controls improve forecasting accuracy reduce unexpected issues and bring greater certainty to planning cycles.
Investors and external stakeholders
There is growing demand for disclosures that are specific credible and supported by evidence. As transparency requirements increase stakeholders will expect meaningful insight rather than generic statements. Strong internal controls help reinforce confidence in reported information.
Customers
Internal controls extend beyond financial reporting. When areas such as sustainability health and safety and ethical practices are governed through clear frameworks customers gain assurance that commitments are being met consistently.
Employees
People are more engaged when they believe they work within a well managed organisation. Clear controls promote accountability simplify processes and reduce frustration caused by unclear responsibilities or repeated errors.
A practical way to demonstrate value is to identify problem areas. These might include recurring operational issues delayed remediation or weaknesses in non financial reporting. Addressing these areas helps show how control improvements can deliver immediate and visible benefits.
Using automation effectively
Automation plays an increasingly important role in strengthening internal controls. It reduces reliance on manual checks lowers the risk of human error and supports consistent evidence collection throughout the year. These benefits support regulatory expectations and improve everyday operations.
However automation is not a cure all. If a process is poorly designed automating it will only magnify existing issues. A more effective approach is to begin with a focused pilot.
Starting with teams closest to the process is critical. These teams understand where inefficiencies exist and what information they need to perform effectively. When automation supports their work evidence quality improves naturally without adding extra burden.
Creating a roadmap that keeps momentum
Internal controls often span multiple functions systems and sometimes external providers. Without a clear plan initiatives can quickly lose direction.
A strong roadmap addresses four early decisions.
Scope
Define what qualifies as a material control. This should reflect key risks regulatory obligations and factors that could impact critical reporting. Controls typically span financial operational reporting and compliance areas.
Evidence
Agree on what good evidence looks like. This includes how often controls are tested how documentation is maintained acceptable thresholds for issues and how remediation is monitored.
Assurance
Clarify how different oversight functions work together. Coordination helps avoid duplication and ensures a consistent approach as disclosure requirements become more structured.
Delivery
Align systems processes data owners and responsibilities. Where third parties support key controls they should be involved early to avoid gaps later.
Many delays occur because these fundamentals are not agreed upfront. Once they are in place teams can focus on testing closing gaps and building confidence in the control framework.
Start early and focus on long term value
Although formal declarations apply to future reporting periods organisations need a full year of monitoring and evidence to support them. Starting early reduces pressure and allows time to test remediate and refine controls.
Different groups respond to change at different speeds. Some need context while others need reassurance that improvements will make their work easier rather than more complex. Tailoring communication helps maintain engagement and progress.
One principle consistently stands out. Keep the needs of operational managers at the centre of the approach.
When ownership is clear processes run smoothly and responsibilities are well understood evidence becomes stronger board oversight improves and the organisation experiences fewer disruptions.
Strengthening internal controls is not just about meeting governance requirements. It is about building a more predictable resilient and well run business.
That is where the true return on investment is found.
