In my recent article, “Balancing Act: Do You Have Too Many Controls, or Too Few?”I summarized the COSO framework for managing risk. In this article, I dig deeper into the assessment side of managing risk.
A global survey conducted by an international accounting organization revealed that 87 percent of respondents believe their organizations could benefit by providing coaching for their finance professionals.
Included in this group is the most senior financial professional at these companies - from CFOs at larger firms to Controllers or Accounting Managers at smaller companies.
In the last decade, the corporate world has witnessed many changes and technology has permeated every aspect of business, including financial and managerial reporting.
Below are three areas where the impact on reporting has been the most significant. If your company isn’t realizing the benefits from these changes, it’s missing a golden opportunity.
Where would Amazon be without Jeff Bezos? Microsoft without Bill Gates and Paul Allen? Google without Larry Page and Sergey Brin?
For most organizations, net worth is directly linked to the talent at the company. This value is known as the human capital of the business. Investopedia defines human capital as “A measure of the economic value of an employee’s skill set . . . the education, experience and abilities of an employee that has economic value for employers and for the economy as a whole”.
“One-size-fits-all” really only works…when it “fits”. Tailoring is required when buying a suit or developing your business controls. Right-sizing your controls will protect your organization.
Developing control activities for your business is no different. If they aren’t right-sized, you will be too vulnerable or too restricted to successfully grow your business.