Crowe Horwath case study

Background

Crowe Horwath Australia is a listed company on the Australian Stock Exchange (ASX). Part of the regulatory listing requirements of the ASX is ASX Guidance Note 8 (GN8). It requires companies to monitor any “potential market-sensitive information” which may appear in social media. Companies must practise social media monitoring of their company and directors, in order to identify market-sensitive information that could influence their share price. Crowe Horwath contracted KINSHIP digital to perform this service.

Challenge

Three significant points must be addressed and assessed by buyers of social media monitoring for ASX compliance purposes, in accordance with GN8:

  • ASX GN8 is about compliance, governance, risk and control
  • GN8 due diligence requires an exception reporting methodology
  • GN8 exception reporting is skilled and labour intensive.

Due to these points, ASX GN8 multi-stage screening process cannot be highly automated. And, once built, execution of the methodology must be cost-effectively executed. Most social media monitoring firms serving marketing needs lack the procedure-oriented capabilities to build and apply such an exception methodology to social media data, let alone at an acceptable price point.