BDO LLP, the global accountancy organisation, has teamed up with software business Ideagen to produce a White Paper on achieving effective corporate compliance and oversight. The report, entitled ‘The Golden Thread: Achieve Sustainable Competitive Advantage via Risk-Based Compliance and Oversight’, duly highlights the importance of collaboration between an organisation’s Board of Directors, management and internal audit teams when it comes to managing corporate risk.
BDO’s Risk Advisory Services and Ideagen work with a broad range of organisations across a variety of industries to help them implement effective risk management and corporate compliance and oversight strategies, systems and processes.
Nigel Burbidge, global chair of BDO’s Risk and Advisory Services and co-author of the White Paper, informed Risk UK: “The purpose of this document is to provide organisations with some insights in addressing the challenges associated with achieving corporate compliance and oversight. How are management performing in the delivery of strategic priorities? Do those charged with the governance of the business understand what the principal risks are that may prevent the company from achieving its goals? Are they managing those risks appropriately, and is the business fully compliant with applicable laws, regulations and standards?”
Burbidge continued: “These are all questions that executives and managers have to take into consideration when designing and implementing compliance and governance programmes. This White Paper addresses these challenges, first by adopting a risk-based approach towards corporate strategy and, second, by harnessing the leverage and power provided by risk-based corporate compliance and oversight software tools and methods to standardise and automate compliance and oversight.”
Change management and manoeuvrability
Gordon McKeown, product evangelist at Ideagen, added: “The rate of change in many organisations’ operating environments and markets is more extensive than ever before. Change management and manoeuvrability are prerequisites of survival and success, requiring strong governance, strategy, performance and risk management.”
McKeown added: “Many standards and regulations are moving towards a risk-based model. For example, more than a million companies around the world comply with ISO 9001, with the new 2015 edition encouraging them all to adopt a risk-based approach to operational management.”
In conclusion, McKeown observed: “Currently, many organisations are seeking the operational efficiency benefits to be derived from adopting a risk-based approach to performance and strategy management. Ideagen and BDO recommend that companies take a risk-based approach to the management of strategy and operating performance in order to become more effective in achieving their goals.”
*Copies of the White Paper ‘The Golden Thread: Achieve Sustainable Competitive Advantage via Risk-Based Compliance and Oversight’ can be downloaded here