It is the responsibility
of everyone, from the chief executive down. Past corporate failings have been
attributed to lack of accountability, strategy and transparency.
Tougher expectations by
regulators and other stakeholders now mean that corporates and financial
institutions should demonstrate better discipline, control and responsibility.
Failure to comply with existing and emerging regulation could jeopardize
reputations and livelihoods. How robust is your governance, risk and compliance
program?
Financial risks have
probably never been more acute. Capital reserves, credit portfolios, investment
policies and capital and debt profiles all demand constant scrutiny to
adequately manage and mitigate risk.
Companies should also be
vigilant about risks presented by suppliers. A counterparty who defaults on a
contract, or whose business collapses, can have serious financial and
reputational ramifications for connected parties.
Fraud risks can also
increase when cash is tight. Some employees become more opportunistic — and
external hackers more resourceful. They find security lax in areas of the
business that used to be better resourced … and they strike. Are your systems
and policies sufficiently robust to ward off the risk of fraud?
At the same time, many
companies are more likely to pursue litigation for losses that they would
otherwise endure in more prosperous times. Disputes arise as they seek to apportion
blame to other parties for inappropriate or negligent behavior that results in
financial or business loss. Could you end up as instigator or defendant in a
litigation case?
With all these demands,
internal audit is in many companies often elevated from pure compliance to a
function that regularly reviews the risk profile for emerging risks and
identifies trends as it keep its finger on the pulse of business performance.
The chief risk officer, meanwhile, becomes increasingly involved in strategic decision-making
where the emphasis is as much on risk as it is on growth.
KPMG Nigeria
professionals provide the experience to help companies stay on track and deal
with risks that could unhinge their business survival.
Tel: +234 1 271 8955 (or
8599)
Fax: P.M.B. 40014,
Falomo
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