Risk

Integrating Risk Appetite and Risk Management

May 15, 2012

Three years after the financial crisis, it's clear that companies still struggle with how to manage risk in the organization; just ask JPMorgan. Part of the difficulty: Getting a handle on risk across the organization is a complex undertaking which requires a careful balancing act. Integrating a formal statement of risk appetite with the risk-management program is an important step. Details inside.
 

Recipe for Anti-Corruption Successes: Due Diligence, Diverse Messaging

May 08, 2012

Much goes into doing anti-corruption properly, but there are four broad categories that top companies focus on: assessing corruption risks, devising controls against them, implementing those controls and procedures with the local workforce, and then following up with constant monitoring. Inside, more lessons for building an effective anti-corruption program.
 

Finding FCPA Violations in Employee Expense Reports

May 01, 2012

Travel and entertainment expenses have long been a haven for abuse, but since the dollar amounts are often insubstantial, companies don't always pay close attention to them. Companies are now finding, though, that they can be a conduit for bribes. "If T&E goes unchecked, it can make a company susceptible to allegations of corruption," says Andrew Levi, head of the Miami office at investigation firm Nardello & Co. How to root out fraud? More inside.
 

Remaking Internal Audit to Focus More on Strategic Risks

April 10, 2012

Once upon a time, internal audit departments were busy enough with reviewing financial statements and Sarbanes-Oxley compliance. But as company risks have exploded in recent years, the modern audit department has had to reconfigure its skills and priorities to match. The emerging result: audit departments pressured to understand what drives the business and to build deeper relationships with top managers. More inside.
 

Many Struggling With Risk Disclosures

April 03, 2012

Two years after the Securities and Exchange Commission enacted new proxy disclosure rules requiring companies to reveal more about how their boards oversee risk, many companies are still struggling with how to communicate aspects of their risk-management programs effectively. According to a recent study, disclosures are too basic and lack details on the company's approach to risk.
 

A Holistic Approach to Diagnosing Corruption

March 06, 2012

Companies with the most sophisticated anti-corruption capabilities do more than resolve the issue and identify its direct cause; they also periodically examine their entire portfolio of corruption issues to better understand how those issues all interact. Inside, the latest installment of our GRC Illustrated series offers insights on the challenges of corruption issue management.
 

Third-Party Corruption Risk: What You Should Know

January 31, 2012

Want to know one of the surest ways to strengthen your organization's anti-corruption capabilities? Start by discovering what you do not understand about the third parties that help you do business abroad. In the latest installment of our GRC Illustrated series, we offer some insights on how to get started on assessing third-party corruption risk.
 

SEC Calls for Companies to Disclose Europe Debt Exposure

December 13, 2011

Staff members of the Securities and Exchange Commission revealed the top items they are paying close attention to during filing reviews, including exposure to the European debt crisis, pension accounting, and goodwill impairment. The SEC is looking carefully at how troubles abroad might affect companies and how they are explaining it to investors, said staff members at a recent conference. Details inside.
 

Boards Continue to Struggle With Oversight of Risk Management

September 27, 2011

A new report suggests that boards haven't done all they would like to tackle risk-management issues. More than half of those surveyed say they don't spend enough time on them, and about the same amount say their companies still don't have a chief risk officer. Meanwhile, more than 60 percent say that personal liability risks for directors are increasing. More survey results inside.
 

Improving Risk Assessments and Audit Operations

June 07, 2011

OK, you've been managing Sarbanes-Oxley compliance for years and your internal controls over financial reporting are solid. What's next for the internal audit team? How do you monitor other risks? Audit and compliance executives from Disney, Office Depot, Timken, and elsewhere gave attendees at Compliance Week 2011 a glimpse into their programs. Full coverage inside.
 

Agencies Publish Guidance for Bankers on Compliance with Risk Measurement Rule

June 06, 2011

Four federal agencies published a guidance on Friday to help banks comply with the "advanced approaches rule" from 2007, which requires certain firms to adopt a framework of advanced measurement approaches to calculate operational risk. Regulators expect that there will be "a narrower range of effective risk management and measurement practices" as banks continue to build their programs, according to the OCC's announcement.
 

This Proxy Season, Excluding Shareholder Proposals Gets Trickier

March 08, 2011

Two significant trends about which shareholder proposals companies can or cannot exclude from the proxy statement are already setting the tone for this year's proxy season; companies should read regulators' response letters carefully to stay on top of developing precedents.
 

Report: Compliance Risks Growing in Emerging Markets

February 15, 2011

Compliance and integrity risks are rising for acquisitions, investments, and joint ventures in emerging markets, a recent study by Deloitte finds. "Companies are either reevaluating the costs and benefits of these deals, or are scuttling those that present unacceptably high risks," says Ed Rial of Deloitte. More survey results inside.
 

Take Advantage of the Hiatus In Corporate Governance Changes

February 08, 2011

This year, what wasn't on the agenda at the World Economic Forum in Davos might be as important as what was. The absence of executive compensation and Wall Street regulatory reform topics may signal a period of calm in corporate governance changes. Inside, Columnists Stephen Davis and Jon Lukomnik give advice on how to take advantage of the hiatus.
 

Regulator Warns on Risk Disclosure

February 04, 2011

A corporate reporting regulator has warned U.K.-listed companies to rethink the way they give shareholders information about their main risks and uncertainties.
 

Survey: Companies Unhappy With Vendor Risk Assessments

January 25, 2011

New research finds that supply chain risk assessment continues to confound companies. More than half of those polled say they are unhappy with their current approach. Top difficulties include a lack of good data on vendors, poor visibility into the use of sub-contractors, and limitations to comparing vendor risks. More details inside.
 

Risk Oversight Tips for Directors, From Directors

September 15, 2010

With the financial crisis focusing increasing attention on corporate risk oversight in general, the topic is top of mind for boards these days. Those grappling with the board's role in overseeing the company's risk exposure can take some tips gathered from other public company directors.In a report published by The...
 

Survey Shows More Work to Be Done on Comp Risk

May 17, 2010

Compensation committees may have more work to do to fully understand the level of risk in their organizations' pay plans, according to findings of a recent survey by compensation consultancy Pearl Meyer & Partners.While 60 percent of the 630 directors and employees polled say they're confident that their compensation committees...
 

RiskMetrics Launches Successor to CGQs, Dubbed GRId

February 24, 2010

Companies and institutional investors take note: RiskMetrics Group is launching the successor to its Corporate Governance Quotient on proxy research reports, dubbed Governance Risk Indicators (GRId).Instead of scoring companies on governance relative to their industry and index as with CGQs, the new methodology will give an absolute score based on...
 

RMG Posts FAQs on Policies and New Proxy Disclosure

February 16, 2010

RiskMetrics Group has published some guidance for companies, in the form of three frequently asked questions, about how its voting policies may apply to some of the disclosures required under the Securities and Exchange Commission's new proxy disclosure rule.The rule adopted by the SEC in December, which includes new disclosure about...
 

SEC's Schapiro Details What's Ahead For 2010

February 05, 2010

More crisis-related cases and more rulemaking, lots of it, are on the Securities and Exchange Commission's agenda in the months ahead, according to the agency's chairman.Highlighting some of the recent mortgage-related, pay-to-play cases, accounting fraud, and insider-trading cases brought by the SEC, its chairman, Mary Schapiro, promised more to come."The...
 

SEC Posts C&DIs on Proxy Disclosure Enhancements

December 22, 2009

Consider it a holiday gift from the Securities and Exchange Commission: The staff of the Division of Corporation Finance has posted new guidance for companies on transitioning to the recently approved proxy disclosure enhancements rule.The five new Compliance & Disclosure Interpretations posted Dec. 22 comprise the staff's interpretations of how...
 

SEC Oks Tweaked Proxy Disclosure Enhancements for 2010

December 16, 2009

Those tasked with drafting proxy disclosures take note: The Securities and Exchange Commission has approved proposed amendments to its proxy disclosure rules, with some notable changes from the July proposing release, that you'll have to incorporate into your 2010 proxy disclosures.The SEC, in a 4-1 vote, okayed proposed changes to...
 

RMG Seeks Comments on Draft 2010 Proxy Policies

November 03, 2009

Reminder: RiskMetrics Group is seeking comment on its draft policy updates for the 2010 proxy season.Comments are due by Nov. 11. RMG is considering changes to its U.S. policies in four areas: Pay riskiness, adoption or renewal of non-shareholder approved poison pills, director independence, and alignment of pay and long-term...
 

Tips for Conducting Exec Pay Risk Assessment: Start Now

October 27, 2009

If they haven't already, companies, boards of directors and compensation committees ought to put a process in place for assessing the risk of their executive and employee compensation programs, partners in the law firm Winston & Strawn advise.A pending Securities and Exchange Commission proposal would require all public companies to...
 

SEC Creates Risk, Strategy, Financial Innovation Sector

September 17, 2009

In the latest installment of its post-Madoff reforms, the Securities and Exchange Commission has created a new division aimed at identifying developing risks and trends in the financial markets.The new Division of Risk, Strategy, and Financial Innovation, led by University of Texas law professor Henry T. C. Hu, combines the...
 

Survey Sheds Light on Fraud Worries, Expectations

August 28, 2009

Given the economic downturn, record levels of government spending, and the uptick in enforcement, it's not surprising most executives expect fraud and misconduct risks to stay the same or increase over the next year.That's one finding from KPMG's 2009 Fraud Survey, which polled more than 200 executives on the nature...
 

Report: Risk-Management Overhaul Needed

August 04, 2009

While the financial crisis has made risk management a hot topic in boardrooms and C-suites, most corporate executives say they need to overhaul their risk-management approach, according to results of a study by Accenture.A survey of 260 chief financial officers, chief risk officers, and other risk executives found that only...
 

Investor Group Offers Views on Reg Reforms

July 15, 2009

A high-profile group of investors, led by two former Securities and Exchange Commission chairmen, has published its own views on how best to reform regulation of the U.S. financial markets, which include calling for the creation of an independent Systemic Risk Oversight Board.The Investors' Working Group, sponsored by the CFA...
 

Exec Comp Reform Debate Picks Up Steam

June 12, 2009

The national debate on executive compensation reform picked up steam this week, as the Treasury Department laid out its principles for compensation reform, unveiled its Interim Final Rule on the compensation and corporate governance standards that apply for TARP recipients, and appointed Kenneth Feinberg as Special Master for TARP Executive...
 

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Survey of the Week


Deloitte is conducting their annual Look Before You Leap: Managing Risks in Global Investments survey to better understand the approaches companies are taking to address compliance and integrity-related risks in emerging markets. 

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