With a new year comes time for reflection. Look back on past trends and identify what’s to come in the year ahead.
Currently, we are seeing a transition of the types of risk being reviewed—from financial to operational.
When people think of Risk Management, they most commonly associate it with legislation compliance such as FCPA, UK Bribery Act or SOX, which were designed in reaction to a number of major corporate and accounting scandals and the bribery of foreign officials. Together these acts have generated billions of dollars in penalties. But, risk management doesn’t stop there—over 25% of our customers are using our technology to assess risks in their core business operations.
Here are just a few compelling examples:
- PAYROLL– we have a client that is a major municipality who used our technology to discover 80 non-employees on their payroll.
- CORPORATE CREDIT CARDS – our customers have caught employees using corporate credit cards to purchase personal gas, clothing and even in one example, cattle for their ranch. It may seem like nickel and diming, but we’ve discovered employees charging hundreds of thousands of dollars to their corporate cards.
- PAYMENTS—a customer in the healthcare industry uncovered over $17M in duplicate payments during a single year.
- OVERTIME AND ABSENTEEISM – a Canadian Crown corporation used technology to discover $4M in excessive overtime and substantial patterned absenteeism levels.
- REVENUE LEAKAGE – a Telecom company in Africa used technology to monitor subscriber transactions and billing, and uncovered over $60M revenue leakages in a single year.
There are many examples of the value the Risk Management function can bring not only to the Finance division, but also to other areas of business within an organization—this is how ACL and our customers are transforming Audit and Risk.
How are you transforming Audit and Risk within your organization?