Risk advisory provides value-add internationally and across industries in the areas of strategy, operations, financial monitoring and compliance.
At PKF, we have seen that there is a competitive advantage for companies who have risk management implemented when compared with less prepared competitors as the early identification of issues and application of necessary changes enable them to step into new market activities with well-balanced decisions supported by robust processes.
Implementation of risk management systems however face various challenges and pitfalls:
- Insufficient calibration of risk management processes resulting in a high volume of work for little benefit
Initial systems implementation requires extensive calibration to correctly respond to the issues at hand. The implementation of these systems comes with a steep learning curve that can cause self-implementation to be a lengthy and costly exercise.
- Focus on risk rather than on objectives
A common pitfall is for companies to implement systems performing 360° risk surveys that have no usable output, rather than focusing the systems on their objectives and helping determine the risk of potential deviations. This leads to an extensive administration instead of the identification of and focus on risks and opportunities that really matter.
- Overly complex systems
Improper risk management implementation often leads to overly complex systems being implemented which result in underutilised systems that interfere with business processes rather than being a part of the solution. Correct integration of a risk management system creates linkages with business plans, financial reporting and/or internal control (including internal audit) and provides tailored procedures and reports, and a reduction of administered data fields.
- Administering the known risks rather than being forward-looking
Companies are operating, or planning to operate, in an environment of largely uncharted territory where there are new risks arising that challenge their ability to successfully execute their business strategy. The risk radar needs to be responsive and adjusted to focus on changes in the external environment and their impact on the company’s objectives.
We have Risk Advisory Specialists throughout the world who can deliver any of the following services that help your enterprise to mitigate your economic, regulatory and compliance risks:
- Internal Audit Globally
Modern internal auditing is designed to help an organisation accomplish its objectives and to bring a systematic and disciplined approach to evaluating and improving the effectiveness of risk management, control, and governance processes. Our global internal audit professionals have the unique ability to identify potentials of improvements and add value. We can provide internal audit resources on either a co-sourced or out-sourced basis.
- Service Organisation Control Reporting
Service organisation control (SOC) reports are designed to help organisations that operate information systems and provide information system services to other entities. Our international team of experts can deliver an independent examination report depending on the specific needs of the service organisation. Reports can be pursuant to AICPA and/ or IAASB auditing standards.
- Cybersecurity Reviews and Assessments
Information security threats are extremely diverse and constantly changing. Our team of global cybersecurity advisors can formulate strategies to effectively remediate risks and thoroughly investigate and combat information security incidents.
- Third-Party Vendor Risk Management
Our professionals can assess your overall program in place to manage third-party risk across your organisation. We can address process ownership, control and oversight responsibilities, in addition to performing vendor site reviews.
Fraud awareness, prevention and mitigation are issues facing organisations on a daily basis. Our team of experts can align with your organisation by ensuring compliance with regulatory and legal requirements (FCPA, UK Bribery Act, Anti-money laundering, etc.) and dealing with issues that may arise.
- Dynamic Risk Assessments
Global companies need to constantly recalibrate their internal audit plans based on what is happening within their organisations, their industries and geographically in order to take appropriate steps to realign their risk profile. Our global professionals can assist internal audit departments in addressing and reacting to emerging risks on a timely basis.”
- Sarbanes-Oxley Compliance
Our experienced professionals have helped numerous companies sort through the complexities of SOX compliance. We can help establish, document, maintain and monitor internal control over financial reporting for publicly held companies.
- COSO 2013
We can provide the right resources and the right level of support to seamlessly implement and transition your company to the 2013 internal control framework.
Why do you need us?
Enterprises are facing increased challenges for business leadership to succeed in the face of market dynamics, competition and increasing regulatory burdens. Today, risk management is a leadership instrument which is a global necessity in governing and enterprise. All over the world, companies are increasingly required to report not only financial numbers but also on how they monitor changes in market conditions and related risks and opportunities, and how they are dealing with them (including the provision of indicators on their stability) in order to obtain market credibility.
Application of risk management techniques identifies risks, and opportunities helping to align and focus limited company resources on core objectives.