Reporting, risks, compliance and controls

How do I safeguard my company from risk in this world of change?
For all companies, value is maximized when management sets its strategy and direction to effectively balance growth goals with risks, and then effectively deploys resources in pursuit of this objective. Effective risk management looks beyond specific vulnerabilities to the events that are the source of both risk and opportunity, providing a process for balancing growth, risk and return. The recent wave of business scandals and its impact on corporate reputations has heightened public, press, and investor scrutiny on R&C companies in particular, and as a result, management and boards are increasingly compelled to ensure that risk is properly managed across the enterprise to protect corporate reputation, brand image, and shareholder value.

Adding to these challenges, Standard & Poor's will now apply enterprise risk analysis before issuing corporate credit ratings. Now, more than ever, retail and consumer companies must establish strategic risk management policies and foster an effective risk-management culture.

How PricewaterhouseCoopers Can Help
By establishing a holistic and portfolio-based risk management strategy aligned with organizational goals, companies can improve operational transparency and mitigate large scale disruptions, ultimately protecting corporate and brand reputation. Our professionals can help your company develop a comprehensive risk management strategy to include:

• Enterprise risk management

  Enterprise Risk Management (ERM) is a systematic approach to identifying and managing an organization's business risks. ERM offers a proven method to align risk appetite with strategic goals, deploy resources more effectively, reduce operational surprises and losses, and improve risk response. PwC is particularly suited to assist in ERM as the original authors of the COSO framework (and updates concurrent with Sarbox regulations). We offer a proven method to align risk appetite with strategic goals, deploy resources more effectively, reduce operational surprises and losses, and improve risk response.

• IFRS

  IFRS adoption is a large-scale change requiring multiple phases and resources, but many U.S. companies lack the resources versed in IFRS and its principles, making the move to IFRS from the rules-based GAAP even more challenging. To avoid resource-intensive efforts at the eleventh hour and to reap the benefits of IFRS, R&C companies need to act now to leverage an IFRS conversion that is not just an accounting exercise, but a business approach that creates value. Our Transition IFRS approach provides initial training, coaching and ongoing support to ensure compliance and a smooth transition.

• IT reporting – data protection/security

  Increased data portability, economic incentives to commit theft, and reliance on third-parties for IT support, make traditional data protection methods inadequate. Effective IT management, including security measures and protection against data and identity theft, requires careful measurement and management, particularly when it comes to privacy and protection of credit card and other sensitive customer data. By applying our industry learning and tools, our professionals work with your company to conduct detailed risk assessment and identify appropriate preventive and detective controls. Leveraging new/existing enterprise and value chain information and decision support systems, we can help your organization improve business processes, performance and profitability and help you to effectively manage and mitigate the myriad of security, identity theft, data protection risks, security breaches, financial losses, that can damage your brands.

• Supply chain integrity

  In addition to improving inventory management, many retailers and manufacturers are looking to increase their supply chain knowledge and inventory intelligence as a means to protect their brand equity.
  
  One innovative approach that companies are using to respond to today's challenges is through improving product traceability across the supply chain to ensure end-to-end tracking. The implementation of a traceability program will impact a company’s strategy, business processes, and technology, and will require a disciplined approach. Our professionals, well-versed in supply chain policies, procedures and best practices, can help your company leverage technology to improve inventory management. Ensuring strong controls with suppliers and business partners also can help you mitigate supply chain risks and better monitor compliance across the enterprise - ultimately helping you to protect your brand equity.

• Human capital

  With increased product volume, growing corporate global footprints, and rising complexity of product distribution and sales formats/outlets, the demand for labor is outpacing the availability of people to fill jobs and the ability of local education systems to provide basic skills and training in many markets. This pressure for constant, relentless change has resulted in increased demand on the labor market to adapt to new business models. Our experienced team of professionals can provide functional integration support and tactical implementation, as well as assistance with implementing creative staff training/re-training programs. Aligning labor training and goals with business strategies can optimize workforce goals and help to avoid risks in the short and long-term.