2016 SOX & Internal Control Training: Recap of Risk Assessment
From fall 2015 SOX & Internal Controls Conference
Link to agenda and registration info for 2016 event on June 23-24 at San Francisco Marriott Burlingame: 2016 SOX Details
Given by Ernst & Young
There are a combination of drivers leading to the increased focus on risk management. The regulatory drivers include SEC proposed changes to disclosure and transparency. The market drivers include lack of transparency over company strategy for stakeholders, recent misstatements in account statements and recent sharp movements in equity values. The corporate drivers include requirements to meet risk-return trade offs, ability to assign risk appetite to various business units and capital adequacy.
Rick management adds value by enhancing decision quality, efficiently allocating resources and proactively managing volatility.
Some of the common challenges to implementing an adequate risk management program include “turf battles”, lack of common language, achieving buy-in and establishing quantifiable metrics and measurement.
Ernst & Young speakers recommended these initial steps: seek board and management involvement, select a strong leader, establish a management committee/working group, conduct a enterprise risk assessment, develop initial risk reporting, develop next phase of action plans.
