The collapse of one of the U.K.’s biggest construction firms and major government contractors has highlighted how important it is for assurance functions—including compliance—to ensure that boards have the necessary management information to make key strategic decisions. It also shows that compliance, internal audit, and risk management departments need to provide greater challenges, as well as a critical eye, to check that the strategy and business plan the board is pursuing continues to make sense, especially if market conditions change.

Neil Hodge is a freelance business journalist and photographer based in Nottingham, United Kingdom. He writes on insurance and risk management, corporate governance, internal audit, compliance, and legal...