The role of internal audit continues to evolve. New requirements from Nasdaq and the Federal Reserve will put increased demands on internal auditors, as they continue to grow out of their traditional tick-and-tie roots into more risk-focused watchdogs and advisers. Nasdaq has proposed through the Securities and Exchange Commission to require that all of its […]
Risk Management
Posted inAccounting & Auditing
When Banks Game the Risk Picture
Used to be that companies played games with their earnings numbers, backing a few million from the current quarter into last month to squeak out that earnings beat. Sure, that game will always be played, but there’s a new kind of fudging going on, particularly at big banks: fooling regulators into thinking you are taking […]
Posted inInternal Controls
Developing an Effective Approach to Third-Party Due Diligence
Anyone who has a sibling knows that you can get in trouble for the actions of others. For companies, the same principle applies to third-party affiliates. In fact, more than 90 percent of reported Foreign Corrupt Practices Act cases involve third parties, such as sales affiliates and resellers, acting on the company’s behalf, according to […]
Posted inInternal Controls
Info Governance: Get Data Classification Right First
Data classification is one of the most crucial elements of an effective information governance process—yet one that many companies fail to implement well. In its simplest terms, data classification is the process of categorizing data based on its level of sensitivity. When done properly, the classification of data helps a company determine the most appropriate […]
Posted inInternal Controls
The art of managing policy exception requests
Exception requests are often a thorn in the side of policy managers, and yet they are unavoidable for most.
Posted inRegulatory Enforcement
Regulatory Risk Trumps Others in Recent Study
Even more frightening than a persistently uncertain economic outlook, board members and C-suite executives say regulatory issues present the most serious risk their companies face in 2013. A recent survey by Protiviti and North Carolina State University of more than 200 directors and executives found regulatory changes and increased regulatory scrutiny on product and service […]
Posted inRisk Management
Info Governance: Crafting an Effective Data Security Policy
How concerned are companies about data breaches? In a recent survey, executives said they worried more about leaks of customer or employee data than natural disasters or investigations by the Securities and Exchange Commission. The survey, conducted last year by Chubb found that corporate executives rank “an electronic security breach of customer or employee data” […]
Posted inBoards & Shareholders
Deluge of Paperwork Blamed for Board-Based Security Risks
Buried in paperwork and burdened by regulations and increasing responsibilities. That’s the description Thomson Reuters’ annual board governance survey attaches to boards, and a big part of the reason nearly one-fourth of them are finding it difficult to adequately set “appropriate risk management cultures” within their organizations, even though regulators are demanding it. How boards […]
Posted inAccounting & Auditing
Audit Committees Could Do More to Understand Estimates
One-third of the 1,800 audit committee members around the world who participated in a KPMG survey said they could do more to understand the key assumptions that lie beneath management’s accounting judgments and estimates. In fact, less than half of those surveyed said they are satisfied that audit committees devote adequate agenda time to discussing […]