X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Executives have been batting around the concept of enterprise risk management (ERM) for a long time–certainly at least since I started in this job more than six years ago. Nonfinancial companies seemed to approach it as an almost academic endeavor–some rarefied view of an organization’s thinkable and most unthinkable risks and the theoretical interfaces of those potential threats. Quantifying and then prioritizing exposures were always the biggest hurdles, and ones that often made companies settle for something much less in their risk management. That attitude may be changing (should be changing) as we start to see the possibilities that compliance activities can amount to more than a well-ordered pile of internal controls documentation. The Securities and Exchange Commission and Public Company Accounting Oversight Board have now endorsed and, in fact, mandated a risk-based approach to Sarbanes-Oxley’s Section 404. Now, it is up to management to step up and implement more sophisticated programs of holistic risk management that will integrate ERM, not just into GRC, but into business operations. It may take some investment in solutions as Alfa Corp.’s Connie Whitecotton discovered. And auditors may balk at having some of their newfound power usurped. But ultimately, the battle is not just over lowering audit fees. The real beauty of Auditing Standard 5 is that it could eventually make compliance programs relevant to how a business actually performs. After four years of grousing, it’s time to start making it work.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.