Our most valued governance practice resources from 2024 and why they struck a chord with directors.
In 2024, the AICD released guidance on key governance issues impacting directors across all sectors. As the year ends, we reflect on our most impactful policy releases and why they resonated with directors.
Cyber security
This year, it became increasingly evident that no organisation is immune to cyber threats. High-profile cyber incidents and data breaches affected millions of Australians, tarnishing the reputations of some of the country’s largest organisations and prompting regulators to intensify their scrutiny of board-level cybersecurity practices.
AICD partnered with the Cyber Security Cooperative Research Centre (CSCRC) to release two key resources to support directors to step up their oversight. In February, in collaboration with Ashurst, we launched Governing through a cyber crisis: Cyber incident response and recovery for Australian directors – the first guide of its kind. Accessed by thousands, this guide offers practical advice on managing cyber crises through the 'Four Rs': Readiness, Response, Recovery, and Remediation.
In November, we also updated the highly regarded Cyber Security Governance Principles. This refreshed framework reflects the evolving threat environment in 2024 and includes guidance on digital supply chain risks and effective data governance. It also features case studies from leaders such as former Telstra CEO Andy Penn AO and a tailored checklist for small-to-medium enterprises and not-for-profits.
Strengthening not-for-profit governance
The AICD released the third edition of the Not-for-profit governance principles in April. Not-for-profit (NFP) directors have faced extraordinary challenges in recent years, including the pandemic, the fallout from successive Royal Commissions and ongoing crises such as housing and the cost of living.
Recognising the need for updated guidance, this edition reflects regulatory reforms, increased community expectations of the board’s role and emerging risks. It places a stronger focus on sustainability and organisational culture, while introducing tools to better integrate the client voice or lived experience into board decision-making. These updates are particularly relevant as many NFPs face funding pressures amid rising service demands. Case studies and director reflections are used as a source of practical guidance for NFP boards.
Clarifying directors’ duty of care for regulatory compliance
A new legal opinion by Michael Hodge KC and Sonia Tame, commissioned by the AICD, provides valuable clarity on the standard of care required of directors in overseeing their company’s regulatory compliance obligations. Accompanying the Hodge-Tame Opinion is AICD’s practice statement, Directors’ oversight of company compliance obligations, which sets out what effective director monitoring looks like in practice.
ASIC’s intensified focus on directors’ duties concerning companies’ regulatory compliance has brought renewed attention to this critical governance area. The Hodge-Tame Opinion clarifies that directors are not guarantors of corporate compliance, nor can they eliminate all risks. What matters is whether a director has taken reasonable steps to place themselves in a position to guide and monitor the company and whether they have remained alert to, and acted on ‘red flags’, and challenged management appropriately.
The Hodge-Tame Opinion and AICD guidance applies to the range of regulatory issues boards are facing – from cyber security and data protection, climate reporting, to the deployment of AI, work health and safety and modern slavery. It is accompanied by insights and commentary from some of Australia’s most experienced directors, including David Gonski AC FAICDLife, AICD Chair Naomi Edwards FAICD and Ilana Atlas AO MAICD.
Mandatory climate reporting: A landmark reform
On 9 September 2024, the Federal Parliament passed legislation establishing an internationally aligned mandatory climate-related financial disclosures regime in Australia from 1 January 2025. The AICD strongly supported this reform, successfully advocating for key amendments such as a modified liability framework with an initial period of regulator-only enforcement.
Following this legislative milestone, the AICD’s Climate Governance Initiative (CGI) Australia released Version 2 of A director’s guide to mandatory climate reporting in partnership with Deloitte and MinterEllison. This timely guide reflects the latest international and Australian developments. Detailed fact sheets cover areas including scope 3 emissions and assurance and verification pathways.
We remain, through CGI Australia, committed to keeping directors informed about the latest climate news, including the influence of mandatory climate disclosures in the market. Find updates and insights in our monthly Climate in focus newsletter, subscribed to by 23,000 AICD members.
Navigating Artificial Intelligence (AI)
While AI has been in use for years, the emergence of Generative AI in 2024 sparked widespread debate about its societal and economic impacts. The AICD worked with the Human Technology Institute (HTI) at the University of Technology Sydney to release two resources to support directors in balancing the potential benefits and risks of AI: A director’s introduction to AI and The director’s guide to AI governance. These provide foundational knowledge and outline eight elements of safe and responsible AI governance.
“AI is becoming essential to Australian organisations. Yet investment in AI systems has not been matched by investment in AI governance," says Professor Nicholas Davis, Co-Director of HTI. “Directors should be engaging with management to understand where AI is being used in their organisation and how the risks are being managed.”
Want more?
This is just a section of our governance practice resources. You can find all of our guides in the Director Tools section of the AICD website. For more details on our policy engagement, visit the Submissions page. Additional climate resources, including climate target-setting, and our climate education short courses, are available on the CGI Australia page.
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