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
Website - https://home.kpmg/ng/en/home.html