Why Process Matters as Much as Policy in Corporate Governance

A recent case reported by Channel News Asia, where employees were awarded compensation after being wrongfully dismissed over medical benefit claims, highlights an often overlooked aspect of corporate governance — the importance of process, not just policy.

While organisations are right to enforce internal controls and prevent abuse, this case is a reminder that enforcement must be fair, consistent, and properly documented. A lapse in process can undermine even well-intentioned controls.

For accountants and finance professionals, this goes beyond reviewing claims or identifying irregularities. We are part of the organisation’s control framework — contributing to how transactions are assessed, documented, and ultimately acted upon.

It is not enough to flag anomalies or quantify potential losses. Equally important is ensuring that:
• policies are clear and consistently applied
• historical practices are considered
• documentation supports decisions taken
• actions are proportionate and aligned with due process

In today’s environment, governance is increasingly holistic. Financial oversight must work hand in hand with HR and compliance to ensure that decisions are not only technically correct, but also fair and defensible.
Strong controls protect the organisation. Strong processes protect the organisation when those controls are challenged.

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