For directors to make meaningful contributions in their oversight of management, they need to understand the business environment within which the company operates. They need access to focused information relevant to the strategic issues and business risks facing the organization. They can receive this information only through timely and candid two-way communication with management and other company personnel.
“All of the blame and none of the praise”
This was how one Human Resource professional described their job in a forum on tech recruiting recently. Human Resources (HR) can be a bit of a mine field full of potential hazards and risks while searching for that perfect candidate to fill a company’s needs.
Topics: Laws & Regulations, Human Resources, Risk Assessment, Strategic Risk, Performance Management/Measurement
Fraud is the intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right. In the business community, the ultimate goal of fraud is to gain money. There are numerous frauds within the business world.
Topics: Fraud, Ethics, Risk Assessment, Strategic Risk, Performance Management/Measurement, Customer Satisfaction
In recent blog posts, we’ve discussed KPIs for various processes and even gave a concise description of what they are (see Guide to Managing Mergers and Acquisitions KPIs). In this post, we’ll be looking at KPIs again and this time it’s for Accounts Receivable (AR), Credit and Collections and we have a great document on KnowledgeLeader that goes more in-depth.
Topics: Accounting/Finance, Accounts Receivable, Cash & Treasury, Performance Management/Measurement, Credit & Collections
Organizational alignment is defined as a conscious and systematic coordination and alignment of three powerful and interrelated driving forces: organizational strategy, organizational culture and organizational infrastructure. Organizational alignment is to be mutually supportive and contribute as efficiently and effectively as possible to meet organizational goals and objectives.
Topics: Enterprise Risk Management, Risk Assessment, Audit Committee & Board, Strategic Risk, Performance Management/Measurement
Transaction authenticity can be defined as the authentication of a party’s (individual, organization) identity, to ensure that pending transactions and contractual agreements are legal and enforceable.
Topics: IT Audit, IT Infrastructure, Cloud Computing, IT Risk, IT Controls, Performance Management/Measurement
Few things can be as fraught with stress and complication for top executives and business owners as evaluating mergers and acquisitions. Some mergers are consummated to capitalize on new geographic or demographic markets, expand product offerings, facilitate the acquisition of key employees, boost productivity, reduce competition by absorbing a rival company, or even more long term strategies. Whatever the reason, the process and outcome must be measured to determine if it was successful in meeting business objectives.
Topics: Initial Public Offering, Accounting/Finance, Performance Management/Measurement, Mergers and Acquisitions
Budgeting is a systematic process for:
Topics: Audit Planning, Accounting/Finance, Budgeting
What is Financial Instrument Risk?
Buyers and sellers may enter into sub-optimal financial or commodity instrument structures that have been standardized for efficient electronic trading. Conversely, buyers and sellers may enter into transactions where some trade terms were not anticipated due to shortcomings in the electronic communication means portraying the transaction.
Topics: Compliance, Investments & Foreign Exchange, Financial Services Industry, Energy & Utilities Industry, Performance Management/Measurement
Settlement risk, in its simplest form, is the risk that one party won’t hold up their end in a transaction. There are several reasons this can occur, including time delay, system failure or default, and can also include risk associated with unexpected cost and/or administrative inconvenience.
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