Audit, risk and compliance Archieven - Intermediate

The impact of AI on compliance

Teun Tonino — Tue, 28 Mar 2023 07:02:51 +0000

As a Compliance Officer, you’re likely well aware of the ever-increasing regulatory landscape and the need for businesses to adhere to strict compliance requirements. However, with the advent of AI, Compliance is set to undergo a transformative shift that will impact how businesses manage regulatory compliance, risk management, and regulatory reporting. In this blog post, we’ll explore the impact of AI on Compliance. Automating Compliance Tasks One of the most significant impacts of AI on Compliance is the ability to automate tedious and time-consuming compliance tasks. For example, AI-powered tools can quickly and accurately screen large volumes of data to detect potential compliance issues, freeing up Compliance Officers’ time to focus on more strategic tasks. According to a survey by Accenture, 80% of Compliance Officers believe that AI will transform the Compliance landscape by automating manual processes. Reducing the Risk of Non-Compliance AI can also help reduce the risk of non-compliance by proactively identifying potential issues before they become a problem. Machine learning algorithms can analyze vast amounts of data to identify patterns and anomalies that might indicate a compliance risk. This means that Compliance Officers can take preventative action before a violation occurs, reducing the risk of costly fines, […]

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What can other industries learn from the financial sector?

Teun Tonino — Tue, 11 Oct 2022 06:00:53 +0000

Although risk management and compliance do play a role in most industries today, regulatory compliance and risk management are not at the same high level in every sector. Companies that are active in the financial sector, for example, must comply with strict(er) rules from regulators and other stakeholders. This ensures that risk management and the level of control of compliance issues in the financial world often have a higher maturity level than in most other sectors. For example, this industry applies enterprise risk management (ERM) much more consistently. They use this method at a maturity level that other industries can learn a lot from. From necessity to virtue After the financial crisis in 2008, the financial sector came under a social magnifying glass. Politicians, customers and society demanded change. As a result, the industry had to deal with stricter laws and regulations. Organizations in the financial sector have made a virtue of necessity and are therefore strongly committed to building and maintaining specialist knowledge in the field of risk management, internal control and compliance with legislation and regulations. The example of the financial sector But in which areas exactly is the financial sector ahead of the curve when it […]

Het bericht What can other industries learn from the financial sector? verscheen eerst op Intermediate.

What are RO, RA, RE and RC and how do they differ?

Teun Tonino — Tue, 20 Sep 2022 06:00:57 +0000

Do you know the difference between an RO, RA, RE and RC? They all play a big role in the management of your company. The abbreviations are very similar, but the work of these professionals is quite different. In any case, what they have in common is that they are university and post-graduate degrees. Below we will discuss what these titles mean and when it is best to hire people with these titles. Register Operational Auditor (RO) An RO is a qualified internal audit professional with knowledge and experience in business operations. What does an RO do? The task of an RO is to investigate business operations from a broad and general approach. He does this from a multidisciplinary vision and thus provides insight to the highest management of the organization. As a generalist, the RO helps to tell the story behind the numbers. He looks at all aspects of the company and advises on improvements based on that. Chartered Accountant (RA) The use of the title Chartered Accountant (RA) is protected by law. This means that you may only bear this title if you are registered in the register of the Dutch professional organization of accountants. What does an […]

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The importance of compliance and risk management at scale-ups

Teun Tonino — Tue, 23 Aug 2022 06:00:31 +0000

The number of start-ups and scale-ups is growing rapidly, especially in the world of Fintech. One of the reasons for this is that technological developments offer the possibility of introducing new services or products onto the market at relatively low cost. The threshold to start and to expand quickly in the event of growth and success is therefore low. What is often lacking at scale- and start-ups? Spend sufficient time on laws and regulations, compliance and a good internal control framework for risk management. Stakeholders, on the other hand, expect that these matters are properly arranged and that the partners they work with are ‘in control’. In this article you can read why compliance and risk management are important and how you can fine-tune these matters with the right measures and expertise. From start-up to scale-up: the challenges When compliance and risk management are lacking, start-ups often fail before they can grow into full-fledged scale-ups. In practice, only about 5 percent of all start-ups reach the scale-up stage. This often has to do with the dynamics of this type of organisation. They often grow rapidly and must meet both the needs of the market and the demands of the investors […]

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COSO ERM and ISO 31000: the similarities and the differences.

Teun Tonino — Wed, 15 Jun 2022 07:00:45 +0000

To further professionalize risk management, it is important to apply a good and recognized framework for risk management. COSO ERM and ISO 31000 are the world’s two most important standards for enterprise risk management (enterprise risk management). What exactly do these ERM standards mean? And what are the main similarities between COSO ERM and ISO 31000? You can read it in this blog article. What is COSO ERM? COSO ERM is a widely used risk management model that provides guidelines for internal controls and their management. It is a framework that helps you to gain more insight into the realisation of important organizational objectives, for example in the field of the efficiency of business processes or compliance with laws and regulations. The COSO framework interweaves 4 types of risks (strategic and operational risks, risks in the field of management information and risks from legislation and regulations) in different process steps that you have to go through and that almost every large organization has to deal with. What is ISO 31000? ISO 31000 is an ERM framework that consists of three main parts: The risk management principles that form the foundation of the model. The framework that encompasses the entire policy […]

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Ensuring the follow-up of management letter items and audit findings? This is how to do this!

Teun Tonino — Mon, 30 May 2022 07:00:28 +0000

Many organizations have to deal frequently with management letters and findings from internal audits. Management letters like reports from external accountants to the supervisory board or a company management. But they often have trouble resolving those points or providing proper follow-up. In this article we give you a number of practical tools to better organize the follow-up of findings from management letters and internal audits. Use it to your advantage! Which items are covered in a management letter and internal audit? A management letter often contains findings and recommendation about the operational management and administrative organization of a company. For example, consider the internal control of processes and risks or the design and cost efficiency of the IT environment, but also the administrative organization of a company or institution and current developments in the financial and policy areas. An internal audit mainly focuses on the proper and reliable functioning of business processes and working methods. Follow-up frustration Organizations often have difficulty translating the findings and recommendations from management letters and internal audits into proper follow-ups and targeted improvements. The subject is (too) complex, while monitoring follow-ups and improvements is difficult due to the lack of good systems and dedicated experts. […]

Het bericht Ensuring the follow-up of management letter items and audit findings? This is how to do this! verscheen eerst op Intermediate.

A new era of risk

Karina — Fri, 25 Mar 2022 09:00:21 +0000

Risks that we hardly thought possible a few years ago are now part of a new reality. A growing dependence on IT, a rapid professionalization of cybercrime and new geopolitical tensions. The latter are of course the result of a war on European territory due to the brutal Russian invasion of Ukraine, but also affect China’s rise as a new world power. Nature is also stirring. Consider, for example, climate change, which seems to be happening even faster than even the most pessimistic models predict and is flooding us with extreme weather phenomena. Or consider the growing risk of pandemics, of which corona is of course an unmistakable manifestation. All these events indicate that the global perception of risk management has completely changed. We will explain how organizations are responding to thisnew reality. Dangerous cocktail The world is rapidly becoming a more insecure and unstable place. While the aforementioned risks and disruptive factors all have their own dynamics, they all contribute to a number of pressing global problems. We briefly list them for you. Disrupted supply chains Corona has had a profoundly disruptive impact on global supply chains. Delivery times have increased and are still lagging behind […]

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What is the 3-lines-of-defence-model and why is this so important for organisations?

Teun Tonino — Thu, 04 Nov 2021 07:00:29 +0000

Modern organizations operate in a world that is becoming increasingly uncertain, complex and unstable. They must be able to deal with a growing number of stakeholders with sometimes very different interests. Managing cyber risks is also a challenge that modern organizations, and the people at the heart of those companies, face on a daily basis. In the financial world, the so-called 3-lines-of-defence model is now commonplace. However, this blueprint for effective risk management can also be used in several other industries. What exactly is the 3-lines-of-defense model? How does the model help to define and safeguard key risk management principles such as governance, responsibilities, accountability and control? And how do you implement it in a good and efficient way? Read on to find out! From 1st line to audit: the 3-lines-of-defence-model explained The 3-lines-of-defense model (also known by the abbreviation 3LoD) is a method that enables organizations to effectively manage the most important risks to their business. In addition, it is a way to show the outside world that you are completely ‘in control’. As the name implies, 3LoD assumes three ‘lines of defense’. Together, these three ‘lines of defence’ counteract as many risks as possible: The first line is […]

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How Risk Appetite can help allocate resources

Teun Tonino — Sun, 13 Jun 2021 10:00:37 +0000

Risk Appetite is the extent to which an organisation is prepared to take risks. Many organisations do not do much with this, or do not know how. When does it offer added value?

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What lessons can be learned from the Wirecard debacle?

Teun Tonino — Thu, 19 Nov 2020 12:52:38 +0000

The debacle surrounding Wirecard has been going on for some time now. The end is not yet in sight, with the CEO (Markus Braun) already imprisoned awaiting trial and one of the other prime suspects (COO Jan Marsalek) still on the run at the time of writing. Many articles, columns and blogs have already been published about Wirecard. Through this blog I try to draw a number of lessons and indicate things that have struck me. Hopefully this will help Directors, Risk Managers, (Internal) Auditors, Accountants and other stakeholders to prevent scandals like this in the future. Background What was the Wirecard debacle about again? Founded in 1999, Wirecard provided online payment services. In the beginning mainly for porn and gambling websites, but through acquisitions and a very strong growth curve Wirecard became a well-respected, listed company that even offered banking services at one point. The unusually strong growth, however, attracts attention, because in 2008 the first rumors of accounting fraud came through a shareholders association. An investigation by Ernst & Young (who is appointed as an accountant shortly afterwards) does not reveal anything. In 2011-2014, Wirecard takes over a number of dubious payment service firms in Asia, contributing to […]

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