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e-Book: Purging Vendor IT Risk
Third-party risk management continues to confound many companies, with compliance officers feeling frustrated that the strategies and processes necessary to keep pace with these risks are evolving faster than their companies can manage. This e-Book, produced by Compliance Week in cooperation with ProcessUnity, takes a closer look at how companies can manage third-party risk on an ongoing basis through the use of effective and secure communications. Click here to download.
Compliance programs need to be part of comprehensive enterprise risk management, yes, but ERM does not displace the roles of internal audit and the compliance program. This week, columnist Jose Tabuena discusses risk management as a distinct discipline that auditors and compliance officers can work with. He describes the resources and frameworks used by risk management which, like compliance, has emerged a new cottage industry of professionals.
Revenue recognition, leasing, financial instruments—the accounting standards for all three have major changes looming, and that means financial reporting executives have lots of implementation to juggle in a short period. This week we look at how to manage so much change well and which companies face the most work. “Get the right team, governance, and structure, so … you are ready to get moving quickly,” says John McGaw of EY.
The definition of a business is key to how to apply certain accounting rules, but those interpreting and following the rules say the current definition applies too broadly, so the Financial Accounting Standards Board is proposing some clarifications.
A new survey that many companies are not waiting for the SEC to complete its anticipated review of disclosure requirements; some are already taking matters into their own hands, and they have advice for others who want to get ahead of the process. “Be aggressive,” says David Cornish, deputy comptroller for American Express. “Go big and if you don’t get everything, get most of what you are trying to accomplish with the process.”
Increased regulatory scrutiny and the sting of billions in fines and penalties resulting from misconduct have prompted many financial firms to pour money into their compliance programs—investments that may be in vain without a unified view of risk. The tech challenges to build that view are considerable, but not impossible if you try to harmonize all the risk data you have. Inside this week, a closer look at how to get started.
As more cloud storage providers evolve from consumer-based products to enterprise-grade services, compliance challenges are evolving along with them. Before entering into a service contract, companies must determine whether their data will be safe and all is in compliance with a growing list of regulations and security frameworks. The added challenge: vetting vendor assurances and not taking self-certifications for granted. More inside.
You see the sentence all the time: “The provisions of this Codification need not be applied to immaterial items.” Those 12 simple words, while universally understood to mean “don’t include unimportant things in financial statements,” are still relatively unclear. In fact, applying the concept of materiality to accounting has gotten so confusing, the SEC, PCAOB, and FASB are drumming up ways to provide more clarity. CW columnist Scott Taub shares his thoughts inside.
Now that the Justice Department has named Hui Chen, former global head of anti-bribery and corruption at Standard Chartered Bank, as its first-ever compliance counsel, corporations under investigation by the department can expect a more nuanced analysis of their compliance programs. Inside, we review what Chen has disclosed so far about her expectations and what other Justice officials are saying about effective compliance programs, too.