CFO Actual Combat: Risk Control Decides Enterprise'S Fate

In the 10 years since the Sarbanes Oxley act emphasizes the necessity of corporate risk management, many experts believe that the effort to lead a company astray may in fact bring a new risk.

In the opinion of these experts, companies usually do not define risk properly.

They focus too much on the same subset of risk management processes, such as the scope of insurance responsibility, fraud detection and identification, and compliance with regulations, while ignoring more important risks.

From vice president of Booz&Co, a consultancy.

(Christopher Dann) is generally considered to be mainly a business risk and compliance risk, but these are only a small piece of the risk puzzle.

In his view, even financial risks such as bad debts or fraud are only a small part of the total loss of shareholders.

Instead, the company's survey of 1200 large enterprises over the past five years shows that over 60% of the loss of shareholders' interests in the past 10 years has been attributed to strategic risks, such as selling erroneous products in the wrong market, but few risk management procedures will be "what kind of"

What products are classified as risk management categories?

For CFO of any enterprise, risk management is not only a kind of financial risk to manage exchange rate changes or commodity prices, but also to deal with risks arising from breach of regulations, or the risk of data errors in financial statements, not only about operational and strategic risks, but also the potential risk of failure of the sole supplier.

It can be said that enterprises

It is the perception and response to the potential impact of any uncertainty in the course of business operation, so it contains more than just the above work.

When executives and boards discuss strategies and make important decisions, they must consider possible risks and discuss strategies.

CFO knows the importance of planning and plans in the long term, so they naturally have special interest in preventing and managing risks in the organization, not just after the disaster.

CFO needs to know what kind of team he needs to build and how to get resources to deal with and deal with possible risks.

The establishment of a solid team led by CFO, including the director of financial reports, directors and their team, is supported by this. CFO is able to take a step back and grasp the overall situation of enterprise development more strategically.