Elevate day 3 highlights
On the last day of Elevate 2024, 650 attendees gathered to discuss the future of governance, risk and compliance (GRC) in 2025 and beyond. Here are the top highlights from day three of the event, including how emerging trends are shaping the risk landscape, how software can help organizations stay ahead of risk and drive business success, and what we can learn from the 2021 IPO boom.
See highlights from day one and day two of Elevate.
The future of GRC: Transformative and actionable insights
Presented by:
- John Horn, Director, Cybersecurity Practice, Datos Insights
- Michael Rasmussen, GRC Analyst & Pundit, GRC 20/20 Research
- Philip D. Harris, CISSP, CCSK, Research Director, Governance, Risk, and Compliance Services and Software, IDC
- Moderated by Amanda Carty, Managing Director, Strategic Market Solutions,
The session explored the view of industry analysts on what they are seeing in the market and what future trends will drive the work we do in GRC. The session challenged conventional thinking and encouraged a deeper exploration of how emerging trends are reshaping the landscape.
Key takeaways:
- Organizations are engaging in continuous compliance and are reaping the benefits by enhancing their security systems, reviewing their processes and boosting their overall knowledge base.
- Risk professionals need to speak about risk management in terms that relate to business objectives and goals.
- Organizations in North America are behind the GRC curve compared to their European counterparts, providing an opportunity to learn and see best practices.
- Organizations need to see risk as interconnected, draw the connections and identify the gaps. Software consolidation is a big priority for GRC professionals and platform architecture is key.
- Before an organization purchases or adopts AI technology, they need to have a plan. There is a lot of hype and noise in the market but make sure your organization has clear objectives and policies in place. People making mistakes come with risks.
Driving business success with Diligent Risk Manager
Presented by:
- James Wade, Chief Information Security Officer, MCS, LLC
- Elizabeth Simon, Risk Vice President, Compliance, Progress Residential
- Samer Rahim, Director, Advisory & Consulting Services, Diligent
- Jay Cameron, Director, Product Marketing, Diligent
This session looked at how to drive business success through Diligent Risk Management with firsthand accounts from industry leaders who have leveraged Diligent’s Enterprise Risk Management (ERM) and IT Risk Management (ITRM) solutions to enhance their commercial operations and automate their cybersecurity programs. It explored how organizations have optimized risk processes, bolstered decision-making and gained a competitive edge in today's dynamic market landscape.
Key takeaways:
- It’s not enough to simply ask business owners what keeps them up at night when discussing risk profiles. While it’s an important question to start the conversation, the answer won’t give you the full picture. Rather, it will help you add to and compile your complete list of risks across the organization.
- For a successful enterprise risk implementation, it’s critical to understand the requirements, your process and your methodology — defining what you’re trying to achieve is key. While it may take time, having a strong vision makes an immense difference and is crucial for success.
- There’s very little visibility across the business into organizational risks, when your risk management and internal audits are built on spreadsheets. Moving to a platform like Diligent means everything is centrally stored and labelled; it saves time but also brings visibility up to the board level. By integrating with other data sources such as Bitsight, board members can see a holistic risk heat map and benchmark how their organization compares to others.
The IPO boom revisited: How it started, how it's going and what we can learn
Presented by:
- Kevin Roy, Managing Director and Head of Issuer Solutions, S&P
- Ryan Nagy, Regional Listings Lead, NYSE
- Moderated by Jason Geeves-Booth, Shareholder Activism Editor, Diligent Market Intelligence
2021 was a watershed year for IPOs in the United States, with more than 1,000 companies going public. During this time, governance norms were shifting; SPACs outpaced traditional IPOs and shareholder expectations around ESGand board diversity were evolving. Over the next three years, shifting monetary policy, geopolitical conflict and the rise of generative AI would put these companies and their governance structures to the test.
The session explored the lessons the IPO class of 2021 taught us about the role good governance plays in building organizational resilience and creating value for shareholders.
Key takeaways:
- 2021 saw record IPO activity: The U.S. market witnessed a record-breaking year for IPOs in 2021, with 1,026 companies raising over $100 billion. This surge was driven by low-interest rates, ample liquidity, and growing retail investor participation. The Covid-19 pandemic spurred interest in Information Technology and Healthcare sectors, reflecting themes of digital transformation and tech-enabled healthcare solutions.
- Financial performance improved post-IPO: According to research from Diligent, average earnings per share improved from -$1.96 in 2021 to -$0.33 in 2023, signalling a gradual move toward profitability. Additionally, these companies showed relatively stable earnings compared to broader market indices.
- There was a co-relation between CEO tenure and market cap growth: Diligent’s analysis revealed a strong positive correlation between longer CEO tenure and market cap growth, underscoring the importance of experienced leadership in driving performance.
- Certain governance factors influenced success: Sound financials and a clear and successful business model, a diverse and independent board structure, robust risk management practices, board members with IPO experience and good investor relations were key factors that contributed to a successful IPO.
- In 2025, IPOs will include a broad mix of industries: Renewable energy and AI tech companies are touted for the most growth. The election will likely influence company decisions on when to go public — government policy affects everything.
Defensible disclosures: Aligning boards, audit and ESG
Presented by:
- Russell Dover, Principal Solution Designer, DIligent
- Daniel Smith, Director, Product Marketing, Diligent
- Heindrek Allen, ESG Manager, Magnit Global
- Jason Radgowski, Senior Director, Advisory and Consulting Services, Diligent
Boards, sustainability teams and audit teams play a greater role than ever in sustainability oversight and reporting, working closely to create accurate and defensible disclosures. This session explored best practices these teams can follow to get — and stay — aligned and make meaningful, defensible disclosures that can stand up to shareholder, stakeholder and regulatory scrutiny.
Key takeaways:
- Proper governance is crucial: Early-stage governance and accountability are essential when aligning ESG disclosures. Being strategic from the outset ensures clarity in reporting and prevents issues later.
- The audit committee’s role is evolving: Audit committees are increasingly focused on ESG-related risks, adding financial audit-like rigor to processes in order to avoid greenwashing accusations.
- Technology and data integration are key to compliance: Leveraging technology like Diligent ESG helps cross-functional teams consolidate and interpret data, ensuring transparency and compliance with evolving regulations.
- Start voluntarily reporting before you’re obligated to: Even if not mandated, companies should begin voluntary reporting to ensure they are prepared for future requirements, as regulations are only becoming more common and more stringent. It also takes considerable time and internal education across your company to aggregate and interpret the relevant data needed for reporting. Starting before you are obligated to disclose ensures your organization is ready to comply when, inevitably, it is mandated to do so.
As Diligent's 2024 Elevate event comes to a close, it’s clear that the insights and innovations shared over these three days will help shape the future of governance, risk and compliance. From thought-provoking discussions on AI's transformative role to the critical importance of transparency and collaboration, attendees leave empowered with practical tools and strategies to navigate the complex risk landscape ahead. Elevate 2024 highlighted not only the challenges but also the opportunities to drive more effective governance through technology and forward-thinking leadership at every level of an organization. We look forward to seeing how these ideas will inspire continued progress in the coming year.
