How data-driven risk management is driving engagement in Australian businesses

In the evolving landscape of corporate governance, directors are increasingly turning to advanced technologies to navigate the complexities of risk management and compliance.

Presented by Diligent

Governance, risk and compliance Software as a Service company Diligent serves a vast network of CEOs, CFOs, company secretaries and board members worldwide.

“Diligent’s innovative approach leverages artificial intelligence (AI) to address three critical areas for organisations — improving compliance, reducing risk and enhancing governance,” says Diligent CEO Brian Stafford.

Diligent’s GovernAI suite of AI tools for governance leaders can help board members and company secretaries prepare for, run and follow up on board and committee meetings. The product suite includes the Smart Book Builder, Smart Legal Scanner, Smart Book Summary, Smart Prep, Smart Minutes and Smart News and AI Education tools incorporated into Diligent Boards and the Diligent One Platform.

By integrating AI, Diligent offers solutions to streamline compliance processes, providing organisations with the visibility needed to manage risks effectively.

Diligent’s AI capabilities include the summarisation of board papers that highlight essential information. Company secretaries can edit these summaries to ensure accuracy and emphasis, providing directors with a clear understanding of the materials.

Hours spent producing the minutes of a meeting can be reduced. “Many companies, especially larger companies, will have a preferred format by which they do their minutes. We can also tailor it so it produces those in a format that is consistent. It’s a huge time saver,” says Stafford.

Privacy and security are paramount in Diligent’s operations, he notes. “One of our customer success team members phrased it that our AI is designed to be ‘as intelligent as Einstein, but with the memory of a goldfish’.” This approach addresses common concerns about data security, reassuring directors that their information is protected.

Continuous improvement of Diligent’s tools means the company is set to introduce the ability for board members to listen to their board papers as podcasts, offering a new format for engagement with the multitude of issues boards need to consider.

Diligent’s Smart Prep tool provides board members with key questions based on the materials. Additionally, Diligent’s AI capabilities offer a risk and legal scanner, enabling organisations to identify potential risks and legal concerns within their documents.

“Whether it’s for one year, two years, three years or more, our risk scanner will identify any risks across time that maybe the company should’ve been more aware of,” says Stafford.

In doing so, AI is enhancing the oversight process, reducing costs and enabling smaller organisations to gain access to better understanding and insight.

Integrating AI

The integration of AI into governance practices is not without its challenges. Directors must navigate a complex regulatory environment where the pace of change can be overwhelming.

Diligent’s AI compliance maps offer a solution by addressing relevant rules and regulations based on jurisdiction and industry. This tool simplifies compliance, reducing the reliance on costly legal consultations and making regulatory adherence more accessible.

The rapid pace of AI innovation is reshaping the governance landscape. In less than a year, Diligent has launched a suite of AI capabilities empowering directors to make informed decisions. This acceleration in technology adoption is driven by the recognition that AI can significantly enhance productivity and efficiency in governance, risk and compliance.

As directors face increasing demands to do more with less, AI emerges as a critical productivity tool. It provides the means to sift through vast amounts of data, identify patterns and deliver insights to inform strategic decision-making.

“AI will be a significant game changer — a huge accelerant and assistant to anything that is governance, risk and compliance,” says Stafford. “I look across our clients and our business, and I see some of our largest clients — even those I thought would be more cautious — they are still cautious, but leaning in.”

Diligent’s AI-driven solutions offer directors a pathway to traverse the complexities of modern governance. By enhancing compliance, reducing risk and improving governance practices, AI empowers directors to focus on strategic oversight and long-term resilience.

“As the governance landscape continues to evolve, directors who embrace AI will be better positioned to lead their organisations through the challenges and opportunities of the future,” says Stafford.

Learn more on how AI can transform your board's efficiency and resilience.