Boards in the United Kingdom are entering a new era of governance expectations. The latest revisions to the UK Corporate Governance Code have placed a renewed spotlight on internal controls and the responsibility of directors to provide clear and credible assurances about their effectiveness. Although earlier proposals around committee oversight of sustainability and diversity initiatives were scaled back, the updated Code confirms that strong internal controls across all material risks are now central to good governance.
For many boards, this means gaining far deeper visibility into how their organisations operate at every level.
Understanding the updated governance requirements
The 2025 version of the UK Corporate Governance Code requires boards to include a formal declaration within their annual reports that confirms whether the organisation’s material controls are functioning effectively. This applies not only to financial controls but also to operational, reporting and compliance controls. The declaration includes three core responsibilities:
- Monitoring and review
Boards must explain how they assessed control effectiveness throughout the year. This includes the methods, oversight structures and review processes used to evaluate whether controls were designed and operating as intended. - Declaration of effectiveness
The board must state whether the organisation’s material controls were effective at the balance sheet date. - Disclosure of weaknesses
If any material controls did not operate effectively, the board must outline the actions taken or planned to address the issue. They must also note progress on any previously reported deficiencies.
These requirements make internal controls a central part of governance reporting and place a stronger emphasis on leadership accountability.
Why visibility across governance, risk and compliance matters
With this revised mandate, boards must be able to demonstrate a full understanding of the organisation’s control environment. That calls for consistent visibility across governance, risk and compliance functions so directors can track risks in real time and respond to issues before they escalate.
Effective visibility ensures that emerging risks are identified early, assessed with accuracy and mitigated through timely action. It protects organisational stability and supports the trustworthy governance practices that investors and stakeholders now expect.
Four steps boards can take to prepare
To align with the new expectations, boards can begin strengthening their internal control oversight through the following actions:
- Evaluate existing controls
Conduct a detailed review of financial, operational and compliance controls to uncover gaps or areas needing improvement. A clear baseline helps directors plan next steps with confidence. - Strengthen monitoring activities
Introduce rigorous and ongoing monitoring routines that allow control issues to be detected quickly. Periodic assessments and clear lines of accountability keep risk oversight strong. - Improve reporting accuracy
Enhance internal reporting processes so boards receive timely and reliable information. Accurate data supports informed decision making and ensures consistency in governance disclosures. - Adopt an integrated GRC platform
A purpose built governance platform, such as the solutions provided by Dess Digital, can centralise documentation, automate monitoring workflows and surface audit ready insights. This helps boards ask the right questions and make decisions based on comprehensive risk intelligence.
The role of modern GRC technology
Regulatory expectations continue to evolve and boards do not need to manage these changes manually. Advanced governance platforms now provide a single source of truth for internal controls, risk assessments and compliance reporting.
A well designed GRC solution can offer:
- A unified view of the organisation’s control framework so directors can track all material risks with clarity
- Automated processes that reduce manual work and improve consistency in control monitoring
- Real time reporting that equips leadership teams with accurate and up to date insights
Technology enables boards to respond faster, operate more transparently and maintain strong governance standards as expectations rise.
Strengthening governance for long term success
The latest updates to the UK Corporate Governance Code reinforce the importance of effective internal controls and transparent board oversight. By understanding what the new declaration requires and by investing in stronger monitoring and reporting systems, boards can meet these expectations with confidence.
Organisations that embrace modern governance practices and adopt reliable technology will be better positioned to manage risk, demonstrate accountability and build long term stakeholder trust.
