China: Digital Internal Control Compliance Initiative

The China Academy of Information and Communications Technology (CAICT) has officially initiated the “Internal Control Compliance Digital Promotion Initiative”. Launched under the guidance of the Ministry of Industry and Information Technology, this strategic endeavour seeks to drive the digitalisation of internal control and compliance management across organisations in China.

Amid the evolving landscape of comprehensive law-based governance strategies and regulatory policies, the imperative to fortify the digital foundations of internal control and compliance management has gained prominence.

Enterprises and institutions are increasingly embracing the potential of new-generation information technology to propel the digital evolution of internal control, contributing to the overarching goals of strengthening internal control, averting risks, and ensuring compliance.

The “Internal Control Compliance Digital Promotion Initiative” by CAICT is positioned as a collaborative effort across industries. The initiative aims to foster industry research, interpret policies, construct standards, collect exemplary cases, organise salon activities, and provide consulting services.

The objective is to establish an inclusive platform that encourages systematic, digital, and standardised construction of internal control and compliance management, ultimately steering the industry towards a progressive future.

The initiative was officially inaugurated during the 2023 Fourth New IT Governance Leadership Forum held in Beijing on December 15, 2023. Dignitaries from the Finance Department of the Ministry of Industry and Information Technology, leaders from CAICT, and representatives from various business units graced the launch ceremony, underscoring the collaborative and cross-industry nature of this transformative initiative.

Under the continued guidance of the Ministry of Industry and Information Technology, CAICT is set to spearhead the promotion of digitalisation in internal control and compliance. The initiative is now open to soliciting participation from diverse units, inviting them to contribute to the collective effort of advancing systematic, digital, and standardised construction in the realm of internal control and compliance management.

The key components of the initiative include:

• Industrial Research: Conducting comprehensive research on internal control and compliance digitalisation, offering insights into the current state of the industry, and making informed suggestions to drive implementation.
• Policy Interpretation: Timely tracking and interpretation of policies related to digitalising internal control compliance, ensuring that participating units stay informed about policy developments.
• Standard Construction: Engaging in research on the digital application of internal control and compliance, creating a standardised digital system, and summarising relevant standards and specifications for widespread adoption.
• Case Collection: Gathering exemplary cases of successful digitalisation in internal control and compliance, creating a repository of best practices, and promoting the exchange of capabilities in digital transformation.
• Salon Activities: Regularly organising themed salon activities to facilitate industry-wide exchanges, share valuable information, discuss implementation experiences, and collectively release research findings.

CAICT’s pioneering initiative not only signifies a commitment to embracing digitalisation but also positions China at the forefront of global efforts in modern governance. By fostering collaboration, standardisation, and knowledge-sharing, the initiative aims to drive a collective and comprehensive digital transformation in internal control and compliance across the nation’s enterprises and institutions.

The digital internal control compliance Initiative holds immense significance in modern governance and organisational management. This strategic undertaking harnesses digital technologies to streamline and enhance internal control processes, fortifying compliance measures.

By leveraging innovative solutions, the initiative promotes transparency, efficiency, and accountability, ultimately safeguarding organisations against risks. The importance lies in its ability to propel businesses and institutions into the digital era, fostering a proactive approach to internal control that aligns with contemporary standards and technological advancements.