Jordan Koningham | Why Governance Fails Without Strong Compliance Policies

You can have the smartest board of directors in the world, a perfect mission statement, and a well-structured leadership team—but if you don’t have strong compliance policies, all of that can unravel fast.

Jordan Koningham, a Bachelor of Laws (Honours) graduate with hands-on experience in compliance, governance, and policy for both public and private sectors (including ASIC), has seen this happen more than once. In his view, governance is only as good as the rules that hold it together. Without those rules, you’re running on trust alone — and that’s risky.

Governance: The Steering Wheel, Not the Engine

Governance is like the steering wheel of a car. It points the organization in the right direction. Good governance sets the tone, defines responsibilities, and keeps leadership accountable.

But here’s the catch: if compliance policies are weak, the “engine” stalls. The car doesn’t move where it’s meant to go. You might even crash.

Compliance Policies: The Safety Net Every Organization Needs

A compliance policy isn’t just a boring document buried in a company handbook. Done right, it’s the safety net that prevents small mistakes from becoming big disasters.

Strong compliance policies:

• Give clear instructions on what’s acceptable and what’s not

• Protect the business from legal trouble and regulatory fines

• Create a consistent way of making decisions

• Build trust with customers, investors, and the public

Jordan Koningham points out that without these protections, even the best governance model will eventually fail.

When Governance Fails Without Compliance

Let’s get real—here’s what happens when governance and compliance aren’t working together:

1. Leaders Act Without Boundaries.
   Decisions get made based on personal judgment rather than rules or ethics.

2. Increased Legal and Financial Risk
   Poor compliance leads to fines, lawsuits, or even losing a license to operate.

3. Reputation Damage
   One policy breach can take years to repair in the public eye.

4. Internal Chaos
   Without clear policies, employees are left guessing about the right thing to do.

Jordan Koningham’s Advice for Getting It Right

Jordan Koningham's approach is straightforward: don’t separate governance from compliance—make them work together from day one. That means:

• Write policies in plain language so everyone understands them

• Train regularly so employees know how to apply the rules in real situations

• Audit your processes to catch small issues before they grow

• Lead by example—leaders must follow the same rules they expect from others

He also stresses the importance of adapting policies over time. Laws change. Markets shift. Compliance documents written five years ago might already be outdated.

Closing the Gap Between Governance and Compliance

If governance is the vision, compliance is the guardrail. Without the guardrail, it’s too easy to veer off course.

The takeaway? Review your compliance framework regularly. Ask yourself: Do these policies actually protect us in the real world? If not, strengthen them now — before you’re forced to do it after a crisis.

As Jordan Koningham puts it:

“Strong compliance policies don’t slow you down. They keep you moving in the right direction.”

And in business, that direction is toward trust, stability, and long-term success.