The lessons of the banking royal commission apply equally to companies outside the finance sector, underlining the need for all businesses to consider non-financial risks, the corporate watchdog says.
As banks feel the fallout from the Hayne royal commission, deputy chairman of Australian Securities and Investments Commission (ASIC) Daniel Crennan on Friday said all corporate businesses must be aware of a “societal shift” in public expectations of higher standards of conduct.
“The mandate of the royal commission was limited to financial services, but the philosophical underpinning of that analysis and the recommendations that arose from that analysis equally applies to all corporate activity,” Mr Crennan said at ASIC’s annual conference in Sydney.
Karen Chester, also a deputy chair at ASIC, underlined the need for all corporate leaders to think about “non-financial risk,” pointing to the massive financial pain the issue is causing banks. Ms Chester added there was a misconception among some that the obligations on directors under corporations law had changed – but this wasn’t the case.