Companies are learning to cope with the idea that volatility and uncertainty are the new normal, forcing risk-management departments—or the compliance and audit executives saddled with risk management simply because someone has to do it—to begin thinking in new terms. Risk management is continuing to evolve, says Ken Coy, U.S. leader for PwC’s governance, risk, […]
Risk Management
Posted inRisk Management
Many Struggling With Risk Disclosures
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 effectively communicate aspects of their risk-management programs to investors. The most vexing question companies are struggling with right now is what constitutes a […]
Posted inRisk Management
A Holistic Approach to Diagnosing Corruption
In the long-running television drama “House,” the ornery and unconventional medical genius Dr. Gregory House masterfully diagnoses the sources of mysterious illnesses. The secret to House’s success stems from his ability to see the big picture, understand how all of a human body’s various systems interact with each other, and spot patterns that no one […]
Posted inInternal Controls
Rethinking Supply Chain Risk Management Strategies
March 11 marks the one-year anniversary of the Japan earthquake and tsunami—foremost a terrible loss of human life, and also a painful demonstration of supply chain risks in a globalized world. One year after those events, risk-management efforts are still trying to catch up. Many businesses probably aren’t as prepared for supply chain disruptions as […]
Posted inRisk Management
Third-Party Corruption Risk: What You Should Know
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 who help you do business abroad. The prevailing Foreign Corrupt Practices Act and U.K. Bribery Act storylines focus on intensifying enforcement activity, but fail to drive home the fact that […]
Posted inAccounting & Auditing
SEC Calls for Companies to Disclose Europe Debt Exposure
Staff members at the Securities and Exchange Commission have compiled a list of tips for preparers based on issues they commonly flag in their routine filing reviews, many of them driven by the poor economy and the debt crisis in Europe. The SEC is looking carefully at how troubles abroad might affect companies and how […]
Posted inBoards & Shareholders
Boards Continue to Struggle With Oversight of Risk Management
Three years have passed since the financial crisis of 2008 put risk management at the top of just about every corporate board’s agenda, and still it continues to confound many directors. In fact, a new survey finds that many board members admit they don’t spend enough time on risk, and many companies still don’t have […]
Posted inAccounting & Auditing
New Risk-Assessment Audit Standards Seek to Spotlight Fraud
Companies can expect more scrutiny from their audit firms this coming annual report season, thanks to new standards the audit firms themselves must meet to assess risk, especially a requirement to weave the risk of fraud into the entire audit process. The good news: Most of those changes should be specific and focused, rather than […]
Posted inRisk Management
Getting a Grip on ‘People Risk’
At the end of the day, compliance failures usually boil down to something done wrong by people. Little surprise, then, that one rapidly rising concern these days is, well, people risk. So says the Conference Board, which published a report recently that ranked people risk—“human capital risk,” in consulting argot—fourth out of 11 among the […]
Posted inAccounting & Auditing
Internal Auditors Get New Risk Certification Option
To emphasize and recognize the role of internal auditors in auditing risk management, the Institute of Internal Auditors is launching a new professional certification. The IIA plans to begin awarding the “Certification in Risk Management Assurance” with a program that begins later this year to identify and recognize those who already demonstrate some significant competence […]
