The Hidden Risk in Plain Sight: Why Signatory Governance Must Be a Board-Level Priority in 2025
In today’s climate of increased regulatory scrutiny, cybersecurity threats, and rising expectations for board transparency, one critical governance issue is often overlooked: Signatory authority.
This isn’t just about tracking who can sign contracts. It’s about controlling who has the power to legally bind your organization—and what risks emerge when that control breaks down. Yet many global firms still rely on outdated tools like spreadsheets and shared drives to manage signatory lists, exposing themselves to fraud, audit failures, and compliance penalties.
Why Signatory Authority Governance Matters
Signatory authority is the foundation of legal accountability. It directly influences:
- Regulatory compliance
- Financial accuracy
- Operational control
- Organizational resilience
Despite its importance, most organizations lack a scalable, transparent system to manage it.
Deloitte reports that 84% of executives cite gaps in managing risk tied to authority and controls. McKinsey has found that 60% of financial processes remain manual, leaving room for error and exposure.
Ten Hidden Challenges in Signatory Governance
- Manual Processes Invite Error and Delay
Spreadsheets are hard to maintain and easy to get wrong—especially during role changes or departures.
- Global Compliance Adds Complexity
Different jurisdictions have different delegation requirements. Inconsistency leads to noncompliance.
- Audits Are Slowed by Poor Documentation
Missing or outdated records lead to long audits and red flags from regulators.
- Workforce Changes Leave Gaps in Authority
Delays in updating records mean former employees may still have signing rights.
- Decentralization Undermines Control
When departments manage authority in silos, oversight is lost and standards diverge.
- Limited Visibility Breeds Blind Spots
Executives often can’t answer: Who currently has authority? And should they?
- Disconnection from Risk Strategy
If authority decisions don’t align with risk thresholds, bad approvals happen.
- Legal Ambiguity Increases Exposure
Changing regulations create gray areas that legacy processes can’t adapt to.
- Signatory Data Faces Cyber Threats
Without secure systems, this sensitive data is vulnerable to misuse or breach.
- Manual Oversight Wastes Time and Money
Too much admin effort goes into chasing signatures and verifying permissions.
Real-World Consequences of Poor Signatory Oversight
- Contracts signed by former employees
- CFOs blindsided by obligations they didn’t approve
- Failed audits with no clear authority trail
- Fines under SOX, CSRD, or OMB A-123
What Boards and Executives Should Do
Embrace Automation
Digital platforms reduce human error and enable real-time updates.
Centralize Oversight
A single source of truth improves accountability and audit-readiness.
Integrate with Core Systems
Linking to HR, ERP, and GRC ensures consistent updates across the business.
Apply Security Controls
Protect authority data with MFA, access restrictions, and audit logs.
Simplify Audits
Accurate, digital records speed up internal and external reviews.
Actionable Recommendations
- Define Authority Policies – Clearly document who can approve what
- Audit Regularly – Revalidate records and remove outdated privileges
- Use Role-Based Assignments – Tie authority to positions, not just people
- Monitor Continuously – Set alerts for changes in roles or permissions
- Invest in Scalable Tools – Choose a system that grows with your business
Why Aptly: Advancing Signatory Authority Governance through Innovation
AptlyDone helps governance teams take control of signatory authority with:
- Unified Oversight – See who has authority across all entities
- Real-Time Accuracy – Instantly update authority as roles evolve
- Seamless Integration – Connect with your HR, finance, and risk systems
- Strong Security – Control access and preserve a full audit trail
Conclusion: Governance Starts with Knowing Who Can Say “Yes”
Signatory authority is not a low-level administrative detail. It’s a high-stakes governance function—and when it goes unmanaged, the risks ripple across legal, financial, and operational domains.
If you’re still managing signatory rights with static lists or spreadsheets, it’s time to upgrade.
✅ Reduce risk
✅ Improve compliance
✅ Strengthen governance
👉 Learn how Aptly can help: www.aptlydone.com
