Optimising financial processes

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Increasing Demands on Risk Management & ICFR

Just when we thought things were back to some form of stability, we have rampant inflation, continued supply chain issues, raw material price volatility, rising interest rates, tightening credit, increasing ESG demands, bank “fragility” . . . .  and breathe . . . .  

Not to mention geopolitical tensions and a war in Europe . . .

Consumer behavior continues to evolve rapidly, medium term forecasting is tricky, and cash is king.

A challenging environment for leadership!

There is no better time to review, assess and take appropriate action on our risk management process, agility, governance and focus.

There are a couple of resources that might help you, below.

Our business risks, the “effects of uncertainty”, are a function of the interactions between our decisions, processes, people, third parties, applications and technologies.

Too often and too late, we realize that our latest technology deployment or process change designed to streamline the customer experience and drive operational efficiency has created new exposures in our control environment.  

Internal Control over Financial Reporting (ICFR) is at the nexus of these challenges.

69% of major corporations have had one or more significant audit deficiencies in the last 3 years, and that is understandably on the increase. Despite huge investments in digitization, the financial control problem isn’t going away.

We asked a large audience of finance, audit, risk & controls leaders about their biggest concerns around ICFR.

Their answers, in priority sequence, were;

  1. Controls Rationalization & Automation
  2. Risk coverage
  3. “End to End” Business Processes
  4. Application Systems Landscape
  5. Addressing Audit Deficiencies

These are turbulent times. We are driving fast in, at best, variable conditions, and in many cases with very little visibility.

The webcast recording below has proven somewhat prescient and shares trends on ICFR, the key challenges affecting audit, finance and IT, the impact of technology, key questions to ask and strategies for success.

You can also request the ICFR Playbook here . . .

Thanks for reading . . .