Can you achieve a level of compliance that assures security? 
Or is compliance simply a by-product of a strong security posture? 
Should compliance be considered an integral part of security itself? 

These questions are not new, but they continue to surface as organisations weigh the relationship between security and compliance. 

Compliance and security are distinct but interdependent;

 the goal is to embed compliance within an integrated risk approach so obligations are met while materially reducing risk.

, recently hosted a roundtable with cybersecurity and risk leaders to explore a growing concern: Are organisations too focused on ticking compliance boxes — and not enough on managing real-world risk? One of the opening questions was why breaches continue to occur — and whether a strong compliance stance naturally stems from an organisation that understands its risk posture. The discussion that followed revealed a tension many organisations face: compliance is often treated as a box-ticking exercise, while risk management is what actually protects the business. At the same time, regulatory obligations must be met; the opportunity is to connect them to risk so they reinforce each other.

Chair Pierce Ferriter suggested that security posture is all about metrics. Another participant noted the difficulty of demonstrating evidence of hacking, as attackers often target the very access and perimeter controls — like identity services and firewalls — that are meant to protect organisations. This raised the question: do those metrics truly deliver the insights needed?

Later, one participant argued that organisations aren’t learning enough from incidents and should focus more on sharing information. Others agreed that while defences are improving, organisations must prioritise what matters most — often starting with a 

strong vulnerability management programme.

The takeaway? Metrics matter, but integrated programmes that connect incidents, controls and risks, and enable learning across functions, drive real improvement.

A recurring theme was the disconnect between cybersecurity teams and the wider business. The group noted that business leaders care less about vulnerability management and more about how risk is being managed. One participant remarked that many cybersecurity teams don’t fully understand how the business operates — and “forget they’re there to help the business, not stop it from doing things.” In other words, unnecessary blockers can hinder operations. By aligning with business objectives, security can help prevent financial losses, support regulatory compliance, and enable deals to close. That shift, from technical gatekeeping to strategic enablement, is key. Security teams must translate technical posture into business risk and outcomes — using unified reporting and dashboards leaders can act on.

Another attendee noted that CISOs must balance business incentives with security requirements, communicate them effectively, and maintain the highest possible level of protection. The chair added that while most programmes aim to support profitability, security teams are often misaligned with that goal. One participant observed that boards frequently ask whether the business is secure — often equating security with certifications — without fully understanding their value. Participants also noted that many boards lack former CISOs, which can leave key compliance and security questions unanswered at the top level.

The conversation also turned to supply chain management. One attendee argued that framework updates can lag emerging risks, which isn’t reflective of a modern, evolving standard. As a result, organisations should prioritise and sequence applicable obligations based on risk and business materiality while ensuring mandatory requirements are met. The group agreed that most frameworks are risk-based, but regulators don’t treat compliance as a simple checkbox exercise. The aim is to do both by integrating compliance into risk management — meeting obligations while actively reducing exposure to material risk.

The group also discussed ISO standards, which one participant described as a “quality framework, but not one that tells you how to do security.” A common complaint was the deliberate ambiguity around product use — frameworks avoid endorsing specific tools, but this often leads to confusion. The implication? Organisations need to interpret frameworks in the context of their own risk profile — not blindly follow them.

In closing remarks, the chair noted that security leaders often aim for a point of “reduced risk and residual risk” — a difficult balance to achieve. They added that it’s equally challenging to shift the language and metrics used to measure success. Participants agreed that 

 One claimed that an organisation can hold every certification available but "still have poor security." The consensus: organisations must focus on what matters to them, understand what’s appropriate for their business, and aim for a fit-for-purpose risk posture aligned to the organisation’s risk appetite and regulatory obligations. The discussion concluded with a reflection on better ways to demonstrate business security — especially in the context of supply chain relationships — and the importance of making the business aware of what security is achieving.

On the theme of “stop wasting time on compliance – start managing risk in line with your business objectives,” the session ended with a final question: is compliance work truly time well spent if it exists only to satisfy customers or auditors? Does good compliance equate to strong security — or should organisations focus instead on building secure connections and positioning themselves to achieve their business goals? Ultimately, the opportunity is to embed compliance within an integrated risk programme so obligations are met and security outcomes advance business goals.

This guide helps risk and compliance leaders adapt to AI-driven expectations, shift from reactive to strategic, and stay credible in a fast-changing landscape. 

Shift from reactive to strategic

Compliance may be necessary, but it’s not sufficient. Organisations that treat it as the end goal risk missing the bigger picture: managing risk in a way that supports business growth, resilience, and trust. The opportunity is to operationalise compliance within an integrated risk programme that unifies obligations, controls and risk reporting.

Ready to move beyond checkbox compliance?

Discover how Diligent helps organisations connect compliance and risk — from integrated risk platforms to third‑party oversight and board‑relevant reporting. 

Stop treating compliance as the finish line: Manage risk in line with your business objectives 

 has evolved from periodic compliance reviews to strategic risk intelligence. Board members and executives increasingly expect real-time insights, proactive risk identification and data-driven guidance that supports business performance — not just historical reporting on control effectiveness.

This transformation requires technology infrastructure that matches these elevated expectations. Organizations implementing AI-powered audit management platforms are more likely to achieve reductions in manual processes while providing more comprehensive risk coverage than traditional approaches.

. The real value lies in what audit teams do with the time they save and the insights they uncover.

"We as auditors don't make the company any money, unless we make a cost recovery, which is a one-time event. We need to keep giving strategic value to the organization so they keep funding our resources," says Tom Keaton, Former Director of Internal Audit at Crown Castle.

The challenge for chief audit executives (CAEs): how do you select audit management software that delivers genuine efficiency gains while positioning your team as trusted advisors rather than compliance checkers?

This comprehensive guide covers what matters most when 

Core efficiency features that reduce fieldwork time and administrative burden

AI-powered capabilities that analyze 100% of data rather than samples

Integration features that connect audit, risk and compliance functions

Continuous monitoring and real-time reporting capabilities

Security and documentation controls for regulatory requirements

1. Unified audit workflow management across the enterprise

Traditional audit processes scatter work across disconnected tools:

This fragmentation creates version control nightmares, collaboration delays and 

Comprehensive audit management software consolidates planning, execution, documentation and reporting within a single platform. Teams can use the same methods that make projects the same. They can also use different methods for different types of audits.

"Process owner engagement is not just taking instruction and running with it. This is paramount to the deployment of the analytics program. We listen, we engage, we get process owners involved so they feel like they're a part of it. And when we deliver 100% of what they want, they love it and they want more of it. Keeping your owners engaged and part of the process is super important," says Brad Karn, Manager, Financial Data Analytics at Mercy Health.

Centralized platforms provide audit teams with enterprise-wide visibility: audit status dashboards, resource allocation analytics and risk coverage heat maps that inform strategic planning decisions.

Since advanced platforms can reduce audit execution time significantly, your team gains capacity to focus on higher-value activities like risk assessment and strategic advisory work. This efficiency gain is crucial when 42% of CAEs identify embedding AI into audit workflows as an important priority for 2025, 

2. AI-powered data analytics for 100% transaction coverage

Sample-based testing examines fractions of transactions, potentially missing the anomalies and fraud schemes that exploit statistical gaps. 

 transform testing methodology from statistical samples to comprehensive population analysis.

Advanced platforms analyze every transaction across financial systems, operational databases and third-party applications — flagging exceptions, identifying patterns and surfacing outliers that traditional approaches miss entirely.

These capabilities extend beyond financial transactions into operational risk domains:

Procurement patterns indicating segregation of duties violations

Vendor payment anomalies suggesting kickback schemes

Inventory movements revealing control breakdowns or potential theft.

3. Continuous monitoring that replaces periodic review cycles

Traditional quarterly audit cycles create months-long visibility gaps, allowing risks to compound undetected. By the time auditors identify control failures or compliance violations, financial impacts have multiplied and remediation costs have escalated significantly.

 shifts audit teams from backward-looking periodic reviews to real-time risk intelligence. Automated controls testing runs daily or weekly across critical processes, immediately flagging exceptions that require investigation rather than waiting for scheduled audit fieldwork.

This approach fundamentally changes how audit teams interact with operational management. Instead of delivering findings months after issues occurred, auditors provide current intelligence that enables immediate remediation.

4. Structured audit methodologies with built-in best practices

 often follow inconsistent approaches across different engagements. New auditors struggle without clear guidance, experienced professionals duplicate work that templates could standardize and quality varies significantly between team members.

Sophisticated audit platforms embed proven methodologies directly into workflows:

Testing procedures mapped to specific control objectives

Documentation requirements that ensure regulatory compliance

Following this structure accelerates routine tasks so that auditors focus their analytical skills on areas requiring expertise. This consistency becomes essential for organizations implementing the new Institute of Internal Auditors (IIA) 

, which emphasize enhanced documentation requirements and standardized approaches.

5. Advanced reporting and visualization capabilities

 transforms data into decision-making intelligence. Static reports buried in lengthy documents fail to communicate urgency, while spreadsheets require manual interpretation that delays action. Modern audit stakeholders — from 

 members to operational management — expect interactive dashboards that reveal insights at a glance.

AI-powered audit platforms generate executive dashboards that highlight critical findings, trend analyses showing risk evolution over time and heat maps indicating where control environments require attention. These visualizations enable board-level conversations about strategic risk rather than detailed compliance discussions.

Discover how comprehensive audit management solutions accelerate insight delivery and demonstrate strategic value to stakeholders.

Automate your audit management

6. Seamless integration with enterprise systems and data sources

Audit value depends on data access. Traditional approaches require manual data extracts, file transfers and reformatting — processes that consume weeks while introducing error risks. Each disconnected system becomes a barrier to comprehensive risk assessment.

Modern audit management platforms connect directly to 

 (ERP) systems, financial applications, HR databases and operational tools through pre-built integrations and API connections. Automated data ingestion eliminates manual file handling while ensuring that auditors analyze current information rather than outdated extracts.

These integrations extend beyond into operational and compliance domains. For example:

Vendor databases for third-party risk assessment

Contract repositories for procurement testing.

Comprehensive connectivity enables auditors to correlate information across systems, identifying risks that siloed analysis misses entirely.

7. Automated workflow and task management

Audit projects involve dozens of team members executing hundreds of tasks across multiple locations and timeframes. Manual coordination through email and spreadsheets creates confusion, duplicates effort and allows critical steps to fall through the cracks.

Automated workflows route tasks to appropriate team members, trigger notifications when deadlines approach and escalate overdue items to supervisors. This orchestration happens in the background, freeing the audit management team to focus on quality oversight rather than administrative tracking.

Smart platforms learn from completed audits to optimize future planning: They identify which procedures consistently take longer than estimated, flag which risk areas yield disproportionate findings and suggest resource-allocation adjustments based on historical patterns.

8. Version control and audit trail documentation

 require comprehensive documentation that demonstrates that the audit work supported the conclusions. Traditional file management creates versioning chaos, as outdated workpapers circulate, superseded findings remain visible and reconstruction becomes impossible when regulators request evidence years later.

Enterprise audit platforms maintain complete audit trails showing every document version, every reviewer comment and every approval decision. Automated timestamping, user attribution and change logging create unassailable evidence that withstands regulatory scrutiny and legal discovery.

This documentation extends to methodology changes: When organizations update testing procedures or risk assessment frameworks, platforms preserve historical approaches alongside current standards. This versioning proves that audits followed appropriate methodologies at the time of execution.

9. Automated roll-forward and audit reuse capabilities

Recurring audits (financial statement reviews, 

 testing, operational assessments) represent significant portions of annual audit plans. Outdated approaches rebuild these audits from scratch each cycle, wasting hundreds of hours recreating workpapers and updating documentation.

Intelligent roll-forward capabilities clone prior-year audits with a single click, automatically updating embedded links, adjusting testing dates and refreshing data connections. This automation happens in the background while auditors focus on analyzing results rather than rebuilding infrastructure.

Additionally, audit libraries enable reuse across the enterprise. When one business unit completes a procurement audit, other divisions leverage that work rather than starting from scratch.

10. Risk-based audit planning and prioritization tools

Organizations face unlimited potential audit topics but possess limited audit resources. Regular planning approaches rely on subjective judgment and stakeholder requests rather than data-driven risk assessment.

Advanced platforms incorporate risk intelligence directly into 

: they analyze historical findings, monitor emerging risk indicators, integrate enterprise risk assessments and flag areas where control environments show deterioration. This intelligence changes the approach from guesswork to strategic resource allocation.

Dynamic risk scoring adjusts audit priorities as business conditions change: A 

 elevates IT audit priorities, acquisitions trigger integration risk assessments and regulatory changes prompt compliance reviews. This agility ensures audit resources focus on current risks rather than outdated annual plans.

11. Collaboration capabilities that break down organizational silos

 requires information sharing across traditionally separate functions:

Siloed organizations duplicate work, miss connected risks and fail to leverage insights that cross-functional collaboration would reveal.

"A very common theme that we see across our customers is siloed departments. Everyone is doing great work, but people don't want to share across departments. When departments collaborate and work together, they achieve better results, reduce duplicate work and bring value to the business," says Samer Rahim, Director, Advisory & Consulting Services at Diligent.

Today’s platforms facilitate this collaboration through shared risk registers, integrated control frameworks and unified reporting structures. When the 

 team identifies emerging cybersecurity threats, the internal audit team automatically receives intelligence for planning adjustments. When compliance teams discover regulatory violations, audit workflows trigger root cause investigations.

12. Enterprise-grade security and compliance controls

Audit teams access organizations' most sensitive information: financial data, strategic plans, personnel records, intellectual property and cybersecurity vulnerabilities. Tools like shared drives, email attachments and personal devices create unacceptable security risks that regulatory frameworks increasingly prohibit.

Dedicated audit platforms provide enterprise-grade security. This includes:

These protections satisfy SOC 2 requirements, ISO 27001 standards and industry-specific regulations (

How Diligent transforms audit management for enterprises

The evolution of AI and automation technologies fundamentally changes what audit management platforms can deliver. Diligent's integrated approach addresses the complete audit lifecycle while connecting audit intelligence with broader governance, risk and compliance functions.

 provides end-to-end capabilities for planning, executing and reporting internal audits that support audit committee oversight and executive decision-making. The platform automates routine tasks while maintaining the structure and documentation that regulatory frameworks require.

Standardized methodologies ensure consistency across global operations, while customizable workflows accommodate specialized audit types and jurisdictional requirements. Teams collaborate seamlessly across locations and time zones with real-time updates that eliminate version control confusion.

AI-powered analytics for complete data coverage

 delivers advanced capabilities that analyze 100% of transactional data rather than traditional sampling approaches. The platform aggregates data across enterprise systems, automates controls testing and surfaces anomalies that warrant investigation.

AI-driven exception detection identifies patterns that manual reviews miss: unusual transaction timing, statistical outliers and relationship anomalies that indicate potential fraud or control failures. These insights enable audit teams to focus investigation resources on genuine risks rather than routine procedures.

Continuous monitoring that enables proactive risk management

Organizations implementing Diligent's continuous monitoring capabilities shift from periodic reviews to always-on oversight that delivers real-time intelligence. Automated controls testing runs continuously across critical processes, immediately flagging exceptions rather than waiting for scheduled audit cycles.

This approach positions audit teams as strategic advisors who prevent problems rather than document failures. Operational management receives timely intelligence for remediation while executives gain confidence that risk visibility matches business velocity.

The right audit management software transforms how internal audit teams operate and demonstrate value. Organizations implementing AI-powered platforms are more likely to see significant improvements in audit preparation time and continuous control monitoring, while positioning their teams as strategic advisors.

Ready to transform your audit function with AI-powered management excellence? 

 to see how Diligent streamlines audit workflows while maintaining comprehensive risk coverage across your enterprise.

12 essential audit management software features for modern audit teams

This article originally appeared in our October 23rd edition of the Diligent Minute Newsletter. For more insights like these, delivered straight to your inbox, subscribe

After months of buzz in the third quarter of 2024, many expected 2025 would finally spark a wave of IPOs and breathe new life into public markets. Instead, mounting economic pressures and sudden shifts in U.S. fiscal and trade policy have forced companies to reconsider even their most basic transaction strategies. Traditionally, when IPO activity slows, mergers and acquisitions pick up the slack. But this year, deal-making has slowed, raising a critical question for organizations everywhere: are they genuinely prepared for transactions in this climate?

2025 IPO slowdown and M&A outlook: Transaction readiness under pressure

We surveyed over 230 chief financial officers, general counsels and directors

 from public and private companies around the world about their growth strategies and transaction plans in this uncertain landscape, in partnership with Wilson Sonsini, 

, CFO Alliance, and the CFO Leadership Council. Here’s what they had to say:

Nearly half of organizations stay the course, with caveats

Interestingly, we found that nearly half of organizations (49%) are still prioritizing M&A or strategic partnerships in their growth strategies. “[Companies are] taking much longer to evaluate deals and are being more selective about opportunities,” NetSuite’s Ranga Bodla, Vice President of Field Engagement and Marketing at NetSuite explains.

Geopolitical uncertainty accounts for some of this hesitancy. Thirty-five percent of the senior leaders we surveyed cited it as a major challenge when it comes to their transaction plans. But many companies just don’t feel ready for complex transactions right now, calling out increased caution, adjusted valuation models and financial projections, and enhanced focus on due diligence and risk as their responses to economic uncertainty.

Confidence in organizational readiness to support a major transaction right now ranks just 5.7 on a scale from 1 to 10, even as 

 say they are prioritizing M&A or strategic partnerships in their game plans for growth. 

“We need to strengthen our governance structures to suit the current VUCA [volatility, uncertainty, complexity, ambiguity] environment,” one survey respondent bluntly declares.

Over half (56%) cited limited resources, over one third (35%) data access, and over one quarter (28%) a lack of experienced personnel as challenges in the transaction process, with many also calling for better defined roles (42%) and stronger board communication and support (31%).

Close the readiness gap: Integrated GRC, finance and AI to accelerate due diligence

But here’s what stuck out as a red flag to me: A mere 4% of organizations reported having fully integrated governance, risk compliance (GRC), and finance systems for transactions. Just 5% use 

, 10% financial reporting tools, 16% ERP software and 20% secure data rooms. All of these technologies can bolster 

, valuations, analysis and planning, and help companies learn about and act on deal opportunities faster. In fact, a full 60% still operate with siloed or only partially integrated platforms.

“Many organizations remain stuck in analog transaction processes,” my colleague Nithya Das, General Manager and Chief Legal Officer at Diligent, said. “Technology adoption directly addresses the operational risks companies frequently cite.”

In short, insufficient tools are holding too many corporate deal teams back, and inefficient processes are slowing them down.

If 2025 has taught us anything, it’s that you can’t control the external environment your organization operates in. But you can adapt to it, think proactively, and get your internal processes in order to support and prepare for transactions. “Companies can do a lot of things day-to-day to improve readiness for a potential transaction,” notes Rich Mullen, Partner at Wilson Sonsini.

Think digital workrooms that engage internal stakeholders and external advisors in activities from onboarding to planning.

Collaboration workflows that standardize due diligence and keep it on track. Secure communications channels for sensitive information, along with records, checklists, playbooks, and “lessons learned” logs stored in one centralized place. “Transaction readiness requires integrated preparation across people, processes, and technology,” Nithya reminds readers.

Nick Araco, CEO of the CFO Alliance, said that “the most effective finance leaders are turning the discipline of transaction readiness into a year-round capability.”

He explains how these leaders are “integrating lessons learned into their planning cycles and building internal muscle for deal execution. We’re also seeing growing interest in how AI can accelerate diligence, flag risks earlier, and free teams from manual work so they can focus on value creation.”

That’s a sentiment we apply to financial modeling, data analysis, enhanced due diligence and more in our report. As Bodla concludes: “The organizations that invest in these technological capabilities now will be better positioned to move quickly and confidently when the right opportunities arise.”

Delve into the details — and step up your own game for deal preparation — by downloading the full analysis: “

Ready or not: How companies are rethinking transactions in a volatile market

Ready for the deal: Transaction readiness in turbulent times

, highlights a market navigating uncertainty with increased caution and deeper due diligence. Yet, a critical statistic suggests many companies are overlooking a key aspect of preparedness: only 4% have fully integrated their governance, risk, and compliance (GRC) with their financial systems.

This disconnect points to a larger issue. True readiness today extends beyond financial metrics to encompass a company’s operational resilience, long-term risk management, and cultural strength. The ability to manage these non-financial factors is a direct indicator of a company’s capacity to execute a successful transaction.

The report finds 40% of organizations are enhancing due diligence as a result of economic turbulence. In the current landscape, this diligence must assess a target’s holistic health. This includes operational risks like supply chain resilience, the strength of its corporate culture and employee morale, and the robustness of its compliance frameworks. A target that lacks control in these areas presents significant hidden liabilities that can impact valuation and post-deal integration.

Siloed GRC and financial systems can be a major red flag in a merger or acquisition because it shows a lack of ability to manage the broad set of data that defines a company's value and risk profile. When leaders prioritize “enhancing data quality,” they are speaking to the need for a unified view of performance. Acquirers now scrutinize a target’s environmental liabilities, social capital (like culture and employee relations), and governance structures. Companies that have mastered this can quickly respond to intense due diligence requests, demonstrating a level of operational discipline that builds confidence with partners and investors.

Successful integration demands cultural alignment

A significant challenge noted in the report is integrating new entities. Lasting success requires more than combining systems; it requires merging cultures and operational philosophies. Leaders must proactively plan for this cultural integration, ensuring shared values and practices to retain talent and achieve synergies. The best practice of using dedicated integration teams must be applied to these non-financial factors to ensure a smooth transition. 

The finding that only 42% of boards are deeply involved in transaction strategy reveals a gap. A board that provides rigorous oversight of material sustainability issues is inherently better equipped to guide a deal through today’s complexities by asking questions about long-term resilience: How durable is our business model? How strong is our talent pipeline? How adaptable are we to regulatory change? Asking tough questions about long-term resilience, not just short-term financials, is the mark of a transaction-ready leadership team. This broader perspective is essential for approving deals that create sustainable, not just immediate, value.

Transaction readiness is a measure of overall organizational health. The question for leaders is: Can we demonstrate strength not only in our financials but also in our operational integrity and cultural resilience?

As you assess your organization’s transaction readiness, evaluate your capability to manage and report on the full spectrum of social impact and sustainability governance factors. Building the systems and disciplines to manage this complete picture is the ultimate preparation for the opportunities and challenges ahead.

Diligent

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