Balancing risk, governance, and ethical leadership to drive sustainable business growth

Deloitte Malaysia PLT’s Audit Partner Murali Samy shares his insights.

Malaysia’s business landscape is undergoing a dynamic transformation, driven by renewed investment momentum, structural reforms, and a steady shift toward higher-value economic activities. The nation’s aspirations in positioning itself as a competitive regional hub are underpinned by strong fundamentals in manufacturing, services, and trade, alongside rapid growth in digitalisation, transformative technologies, and advanced industries.

Offering his perspective is Deloitte Malaysia PLT’s Audit Partner and esteemed judge for the 2026 Malaysia International Business Awards and Malaysia National Business Awards, Murali Samy. With over 30 years of experience in public accounting, he has worked with various organisations ranging from small enterprises to multinational corporations across diverse sectors across manufacturing, property development, plantation, utilities and trading.

What sets enduring businesses apart

Sustainable growth is anchored in the discipline and foresight of leadership. Successful organisations anticipate change, invest in innovation, and remain financially resilient whilst adapting responsibly to evolving market conditions. They build customer loyalty through consistent value creation, nurture resilient workplace cultures, and invest strategically in future opportunities. Conversely, struggling businesses often chase short-term gains, delay critical transformation, and neglect governance until competitive pressures become overwhelming.

Key risks in modern leadership

An over-reliance on a small number of customers, suppliers, or key individuals is a key risk, which leaves a business dangerously exposed if those relationships falter. Cybersecurity and data privacy risks are also often ignored, particularly by organisations that do not view themselves as technology-driven, yet breaches in these areas are costly and can quickly erode customer trust. Additionally, gaps in governance, such as weak internal controls, are equally damaging, frequently resulting in regulatory breaches or reputational damage. These risks tend to surface quietly but can escalate rapidly, threatening organisational stability if left unaddressed.

Balancing operational efficiency and risk management

In today’s environment of heightened regulatory scrutiny, compliance should be viewed as a source of strength, rather than a burden. The most effective organisations embed risk management seamlessly into everyday operations, leveraging technology to automate controls, maintain clear documentation, and foster a culture where compliance is viewed as value-adding. In Malaysia, this trend is increasingly evident as companies integrate ESG reporting frameworks and digital compliance tools into their operations, ensuring transparency, accountability, and alignment with global standards. When risk management is aligned with strategic objectives, organisations achieve efficiency and resilience without excessive bureaucracy.

Common shortcomings in financial reporting and audit readiness

Recurring challenges in financial reporting are strikingly consistent across industries, with inadequate documentation, limited understanding of accounting standards, and weak financial controls being amongst the issues most frequently encountered. These shortcomings often result in inaccurate reporting, a greater risk of errors or fraud, poor decision-making, inefficiencies, and a heightened exposure to compliance and reputational risks.

Organisations that excel in audit readiness take greater ownership of financial reporting quality at the leadership level, supported by finance teams that provide clear, timely guidance. They invest in capable finance talent, implement standardised processes, and conduct regular internal reviews. This leads to more accurate financial information, stronger governance and risk management, improved efficiency, and better strategic decision-making that supports long-term organisational performance.

Ethical leadership as a catalyst for sound decision-making

Ethical leadership is a critical driver of sustainable performance. Leaders who demonstrate integrity, transparency, and social responsibility foster trust amongst employees, customers, and the wider community. Ethical leadership discourages excessive risk-taking and ensures that business success is not achieved at the expense of societal or environmental wellbeing. These values increasingly influence investor confidence and brand reputation.

Key qualities to ensuring long-term success

In the context of business awards, the focus extends beyond financial performance alone. There must be evidence of sustainable growth, strong governance and risk management, transformative innovation and customer impact, and demonstrable leadership effectiveness, as well as strategic investment in talent development and meaningful contributions to communities. These factors reflect resilience and sustainability, ensuring that success is not merely the result of short-term strategies or unsound practices.

Ultimately, long-term business success is built on a combination of strategic clarity, disciplined risk management, ethical leadership, and strong governance. Organisations that embrace this holistic approach are better equipped to navigate uncertainty, maintain stakeholder trust, and achieve enduring growth in an increasingly complex business environment.