Interactive Insight
Three Structural Defects.
Why Compliance Was Built for the Wrong 19%.
Episodic engagement, consensus dependency, the absence of institutionalised challenge — the three defects identified in the SGaaS white paper as the architectural reasons that more than 80% of severe corporate crises are driven by strategy and external risks rather than by compliance failures.
More governance has not produced better governance. The Hunziker et al. (2025) data records that across 669 listed companies in Germany, Austria, and Switzerland between 2018 and 2024, more than 80% of severe corporate crises were driven by strategy and external risks — the categories that compliance governance was not architected to monitor. The white paper identifies three structural defects responsible. Each is recognised in the established governance literature. Their persistence is the empirical evidence that the standard remedies have addressed the wrong unit.
From the SGaaS White Paper
The structural response, tier by tier
Each tier of the SGaaS engagement model — Diagnostic, Retained, Embedded, and Pre-Exit — is structured to close one of the three defects directly. The white paper traces the mapping in full.
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