Take a look at this article on Risk Management published in Financier Worldwide’s Strategies for Successful Public Companies in May 2008 written by BearingPoint’s Tony Klimas.
Compliance and regulatory costs can be a significant burden on global businesses. Some of these costs, such as environmental regulation and financial statement compliance are well documented while others, the cost of managing potential product liability for example, are less visible but significant.
Risk management business disciplines have become increasingly sophisticated and in many companies, the risk management function is a standalone business function under the responsibility of a senior executive. One key benefit of effective risk management can be an overall reduction in compliance and regulatory costs.
In this article, Tony specifically addresses the most recent audit standard developed as part of the Sarbanes-Oxley legislation, Audit Standard No. 5 (AS5). Tony explains how AS5 can help reduce the costs of compliance and explains the key changes that are incorporated into AS5 as compared to previous audit standards such as AS2.
About Tony Klimas
Tony is a Managing Director in BearingPoint’s Risk Management practice. He is based out of our Atlanta office.
The global trade environment is complex—and steadily growing more so. International customs organizations and other regulatory bodies that govern international trade are becoming more adept at using technology to collaborate on and detect noncompliance with regulations and laws. Other factors, most notably terrorism, have added to organizations’ compliance burdens.
These burdens are not easily avoidable as organizations are beginning to realize that global trade is a critical part of their supply chains. Whether they ship products internationally, source raw materials from low-cost countries or set up operations in emerging markets to supply goods locally, today’s global businesses must find ways to cope with the many challenges of moving goods across international borders.
This paper explores new thinking around how to develop a global trade management strategy to seize the opportunities created by globalization while mitigating the risks.
With the recent market turmoil, the question has been raised: “Are traditional risk mitigation systems inadequate in times of crisis?”
Here are some steps organizations should consider to address risk management:
1. Push analytics to the limit. How you measure risk impacts how you address it.
2. Be strategic. Drive a comprehensive data strategy.
3. Examine your business processes. Change them if necessary.
4. Put better information and tools in the hands of deal makers. Empower CEOs with information on the risk environment.
5. Pursue capital arbitrage and compliance opportunities.
6. Jump start the incentive structure. Mobilize your workforce and address the human factor.
7. Implement a comprehensive, integrated performance and risk management framework.
This new thinking on risk management is explained in more detail in this paper. Find out what helps organizations address these issues and position themselves to deliver superior results.