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 […]
Risk Management
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 […]
Posted inAccounting & Auditing
Studies Find Internal Audit Lacking in Leadership Skills
With dramatic changes in the business environment over the past few years, many internal audit departments are caught in a kind of feedback loop—eager to help steer organizations in a new direction, but struggling to demonstrate their ability to be agents of change. Studies by the Institute of Internal Auditors and PwC suggest that after […]
Posted inAccounting & Auditing
PCAOB’s Hanson on Audit Reform
Jay Hanson, one of the newest members of the Public Company Accounting Oversight Board, gave a keynote address at the Compliance Week 2011 conference in Washington D.C last month, followed by a question and answer period. With so much material to cover, Hanson didn’t get to many of the insightful questions members of the audience […]
Posted inAccounting & Auditing
Improving Risk Assessments and Audit Operations
At companies where internal audit and risk processes are maturing, they are now honing their operations to become more efficient and effective. It all starts with strong, open, trusting relationships that enable internal auditors to act less like cops and more like business advisers, John Barresi, vice president of internal audit and financial controls at […]
Posted inAccounting & Auditing
Agencies Publish Guidance for Bankers on Compliance with Risk Measurement Rule
Four federal agencies published a joint guidance on Friday to help banks comply with their “advanced approaches rule” from 2007, which requires certain firms to use a framework of advanced measurement approaches to calculate operational risk. Under the rule, banks have the flexibility to develop operational risk measurement and management programs, processes, and tools that […]
Posted inAccounting & Auditing
‘Much Remains to be Done’ for FSOC, Says Schapiro
The Financial Stability Oversight Council has some of the most critical issues still ahead of it in the implementation of rules under the Dodd-Frank Act, said Securities and Exchange Chairman Mary Schapiro in her testimony on monitoring systemic risk and promoting financial stability to the Senate Committee on Banking, Housing and Urban Affairs today. “While […]
Posted inRisk Management
New Guidance on Risk Appetite
*/ /*–>*/ The London-based Institute of Risk Management (IRM) has released draft guidance aimed at helping organizations to determine, quantify, and communicate how willing they are to take risks. The guidance explains how an organization can determine its risk appetite and what role its board of directors should play in the process. The IRM says […]
Posted inData Privacy
High-Profile Data Breaches Raise Security Alerts
The Treasury Department is pushing companies in the financial sector to beef up their data security. A few recent security breaches, including one last year at Morgan Stanley, have proven once again just how critical it is for national banks and their technology service providers “to perform periodic risk assessments of their information security programs” […]
Posted inBoards & Shareholders
This Proxy Season, Excluding Shareholder Proposals Gets Trickier
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—and companies need to read regulators’ response letters carefully to stay on top of developing precedents. The Securities the Securities and Exchange Commission is not only granting fewer requests to […]