Very interesting CFO Magazine article on the growing crisis of corporate governance, risk breaches and the need for additional technologies to assist companies with the major financial liability issue… "Despite such headlines, “corporate mistakes keep getting worse,” Forrester writes. “In 2015 we will see more of the same, and with even greater financial impact.” The research firm predicts that a single corporate risk event will lead to losses topping $20 billion this year."
Can companies (both large and small) afford to not have IT Risk Control Systems in place to deal with risk breaches? The article outlines some recent corporate examples:
“The Forrester report cites such corporate failings last year as the dozens of product recalls by General Motors that generated a $3.2 billion hit for vehicle repairs and compensation for accident victims. Johnson & Johnson reached settlements totaling $6.2 million for selling faulty hip implants and for misleading promotions of its drug Risperdal, and Pacific Gas & Electric agreed to pay $1.4 billion in fines related to its deadly 2010 pipeline explosion.”
“The biggest corporate payouts were regulatory settlements by top banks, including Bank of America ($16.7 billion), JPMorgan Chase ($13 billion), and Citigroup ($7 billion). Then there was the $8.9 billion that BNP Paribas agreed to pay for pleading guilty to conspiring to violate the International Emergency Economic Powers Act and the Trading with the Enemy Act. The financial institution processed billions of dollars of transactions through the U.S. financial system on behalf of Sudanese, Iranian and Cuban entities subject to U.S. economic sanctions.”
CFO Magazine goes on: “The shifting market suggests that companies should lobby vendors of the most critical business applications to instill Governance, Risk and Compliance (GRC) elements into their products.
What do you think? Is there a gap in technologies companies can use in the GRC marketplace and how can management accountants stay ahead of this growing corporate governance trend?
#financialtechnology #HotTopic #Compliance #Corporategovernance #accountingsoftware #GRC #riskmanagement #cfo