Assets Management and Risk Control

2018 ◽  
pp. 522-546
Author(s):  
María de Lourdes Eguren Martí
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Risk Control ◽  
Value Management ◽  
Sarbanes Oxley ◽  
Management Perspective ◽  
Key Concepts ◽  
Financial Misstatements ◽  
Financial Scandals ◽  
Assets Management

Risk management and internal control is a subject that has increased its relevance due to the recent financial scandals on companies like Enron and Worldcom, and the increment of fraud cases and financial misstatements around the globe. In line with this, several initiatives have been defined or required in order to control the risk exposure in the company processes, including the development of internal control standards like Sarbanes-Oxley (SOX). One of the factors to be considered when taking optimum decisions is risk. Due to this, in this chapter the key concepts over risk assets management will be exposed, including a practical example under SOX framework as well as a system's approach and value management perspective.

Assets Management and Risk Control

2017 ◽  
pp. 374-398
Author(s):  
María de Lourdes Eguren Martí
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Risk Control ◽  
Value Management ◽  
Sarbanes Oxley ◽  
Management Perspective ◽  
Key Concepts ◽  
Financial Misstatements ◽  
Financial Scandals ◽  
Assets Management

Risk management and internal control is a subject that has increased its relevance due to the recent financial scandals on companies like Enron and Worldcom, and the increment of fraud cases and financial misstatements around the globe. In line with this, several initiatives have been defined or required in order to control the risk exposure in the company processes, including the development of internal control standards like Sarbanes-Oxley (SOX). One of the factors to be considered when taking optimum decisions is risk. Due to this, in this chapter the key concepts over risk assets management will be exposed, including a practical example under SOX framework as well as a system's approach and value management perspective.

Internal Control and Assets Management

2021 ◽  
pp. 157-183
Author(s):  
María de Lourdes Eguren Martí
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
System Approach ◽  
New Technologies ◽  
Integrated Approach ◽  
Point Of View ◽  
Sustainable Competitive Advantage ◽  
Core Element ◽  
Sarbanes Oxley ◽  
Financial Scandals

Risk management is a core element from a strategic and operational point of view. Conditions of the environment, financial scandals like Enron and Worldcom, globalization, and new technologies make risk a priority for companies that want to keep a sustainable competitive advantage under uncertainty. In line with these, there are several frameworks, initiatives, and ways to approach risk under a structure organization and integrated approach, including the development of internal control standards like Sarbanes-Oxley (SOX). One of the elements to be considered when taking optimum decisions is a proper risk management. In this chapter, the key elements of assets risk management will be exposed, starting from main concepts, constructing the elements that are applicable to build a risk management system, and developing a practical example under SOX framework with a management and system approach.

scholarly journals KONTRIBUSI AUDIT INTERNAL TERHADAP MANAGEMEN RISIKO

2017 ◽  
Vol 1 (1) ◽  
pp. 53
Author(s):  
Sofyan Hadinata
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Risk Control ◽  
Business Activity ◽  
Audit Process ◽  
Internal Auditor ◽  
Management Procedures ◽  
Potential Risks

AbstractRisks always exist in a business activity of an organization. Risks are closely related to the differences between the results and the expectations. Risk management focuses on the anticipatory actions by recognizing potential risks and influences. Risk management is part of the entity’s internal control in which the main responsibility is in the hand of the company manager or the entity. Internal auditor as the employee or the internal party has the duty to implement the risk management. Internal auditor conducts an audit process towards internal control and gives assurance in the process of risk management. The internal auditor who takes part in consultation role can assist the organization in identifying, evaluating, and implementing relevant risk management and risk control methodologies. Risk management procedures are identifying risks, constructing plans, and determining solutions. Some of the solutions are avoiding, minimizing, removing, or accepting the risks. Keywords: risk, anticipatory, internal  controlAbstrakRisiko melekat pada suatu aktivitas bisnis organisasi. Risiko terkait erat antara ketidaksesuaian hasil dengan yang diharapkan. Managemen risiko merupakan suatu tindakan untuk mengurangi ketidakpastian yang berfokus pada tindakan antisipasi/pencegahan, dengan cara mengidentifikasi risiko yang mungkin terjadi sekaligus dampak yang mungkin ditimbulkan. Managemen risiko merupakan bagian dari pengendalian internal entitas yang tanggung jawab utamanya di tangan manager perusahaan atau entitas. Auditor internal selaku pegawai atau pihak internal perusahaan juga memiliki tugas atau kewajiban atas pelaksanaan managemen risiko. Audit internal melakukan proses audit terhadap pengendalian internal dan memberikan keyakinan terhadap proses managemen risiko. Auditor internal memiliki peran konsultasi yang dapat membantu organisasi dalam mengidentifikasi, mengevaluasi, dan menerapkan metodologi managemen risiko dan pengendalian yang relevan. Langkah-langkah yang harus dilakukan dalam managemen risiko adalah identifikasi risiko, membuat perencanaan, dan menentukan cara penanganannya. Penangannya risiko dapat dilakukan dengan cara yaitu menghindari, mengurangi, memindahkan, atau menerima risiko tersebut.Kata kunci: risiko, antisipasi/pencegahan, pengendalian internal

The Influence of Auditor and Client Section 404 Processes on Remediation of Internal Control Deficiencies at All Levels of Severity

2013 ◽  
Vol 32 (4) ◽  
pp. 45-69 ◽  
Author(s):  
Lynford Graham ◽  
Jean C. Bedard
Keyword(s):  
Internal Control ◽  
Financial Risk ◽  
Balance Sheet ◽  
Section 404 ◽  
Level Control ◽  
Sarbanes Oxley ◽  
Material Weaknesses ◽  
Financial Misstatements ◽  
Internal Control Deficiencies ◽  
Using Data

SUMMARY This paper examines remediation of Sarbanes-Oxley Section 404 internal control deficiencies (ICDs) at all levels of severity, before the balance sheet date. While a number of studies investigate remediation of publicly disclosed material weaknesses (MWs), the activity we study takes place out of public view and occurs among companies with both clean and adverse Section 404 opinions. Using data provided by multiple auditing firms, we find that about one-fourth of detected ICDs are remediated before year-end, leaving many uncorrected. We model remediation activity with direct measures of company and auditor Section 404 processes not available to prior research. Model results show that companies' effective information technology integration and early start to control testing are positively associated with remediation. In contrast, remediation is negatively associated with discovery by auditors, discovery by substantive tests, and related financial misstatements. Following prior research on MWs, we also observe that ICD remediation is less likely for smaller companies with greater financial risk, and for certain entity-level control problems.

scholarly journals From Phishing To Advanced Persistent Threats: The Application Of Cybercrime Risk To The Enterprise Risk Management Model

2010 ◽  
Vol 14 (4) ◽  
Author(s):  
John W. Moore
Keyword(s):  
Risk Management ◽  
Financial Reporting ◽  
Internal Control ◽  
Enterprise Risk Management ◽  
Management Model ◽  
Material Weakness ◽  
Public Companies ◽  
Advanced Persistent Threats ◽  
Sarbanes Oxley ◽  
Enterprise Risk

This paper examines the issues of cybercrime in the context of risk to organizations.  In particular, it considers the control frameworks most commonly used by U.S. public companies to benchmark their internal controls over financial reporting.  It discusses the market for stolen identities, looking at the sources from which many of those identities are stolen.  It reviews the available internal control frameworks and explains how a firm’s risk of cybercrime might be classified as a material weakness under Sarbanes-Oxley Section 404.  It models how the use of COSO’s Enterprise Risk Management model could improve an organization’s chances of avoiding a serious incident.

scholarly journals The SOX 404 procedure; is it still so repelling to foreign issuers?

2008 ◽  
Vol 6 (1) ◽  
pp. 147-157
Author(s):  
Marina Stefou
Keyword(s):  
Financial Markets ◽  
Financial Reporting ◽  
Internal Control ◽  
Control Mechanism ◽  
Control Mechanisms ◽  
Sarbanes Oxley ◽  
Financial Scandals ◽  
Control Procedures ◽  
Financial Environment ◽  
European Corporate Governance

The need for effective and competitive financial markets is reflected in the internal control procedures of listed companies. The recent banking crises and the famous financial scandals have revealed the need for strong internal control mechanisms. Such mechanisms improve firms performance, reduce information asymmetry and are expected to raise firms value. However, due to the inherent limitations of internal control achievement of the financial reporting objectives cannot be absolutely ensured. A great reform in the internal control mechanism was introduced by the controversial Article 404 of Sarbanes-Oxley Act of 2002. This paper lays out the internal control provision described in Sarbanes-Oxley Act, presents the extraterritorial effects on foreign issuers, compares and summarizes overall findings towards ensuring a better financial environment with regard to the international and European corporate governance framework applied

scholarly journals Research on the Improvement of Risk Control Index System of Securities Companies

2020 ◽  
Vol 5 (4) ◽  
pp. 290
Author(s):  
Chenbang Hu
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Risk Control ◽  
Regulatory System ◽  
Financial Industry ◽  
Financing Channels ◽  
Management Measures ◽  
Industry Competition ◽  
The Face ◽  
And Control

<p> With the deepening of the reform of the financial industry, regulatory agencies have not strictly controlled in accordance with the regulatory system. In the face of the ever-changing market environment and the continuous upgrading of the securities industry competition pattern, innovation and development ushered in new opportunities, but also brought some difficulties to the implementation of risk management measures in China. In addition, the development of new Internet economy features. Because the securities companies have not adapted to the new liquidity characteristics, they are insufficient to cope with the new liquidity risks. In addition, the financing channels of securities companies are single, without a good combination of financing channels, it is easy to bring greater risks. Secondly, the imperfection of internal control system and the lack of awareness of risk management and control of employees themselves also bring a lot of trouble to securities companies in risk management and control. To solve these problems, we should start from the root causes, improve the internal risk control, and at the same time, we need to work in the industry. The content of risk management is added in the threshold examination of personnel, and it is used as the assessment content in the subsequent assessment, which urges the staff to take risk control as their own responsibility.</p>

scholarly journals KONTRIBUSI AUDIT INTERNAL TERHADAP MANAGEMEN RISIKO

2017 ◽  
Vol 1 (1) ◽  
pp. 53
Author(s):  
Sofyan Hadinata
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Risk Control ◽  
Business Activity ◽  
Audit Process ◽  
Internal Auditor ◽  
Management Procedures ◽  
Potential Risks

AbstractRisks always exist in a business activity of an organization. Risks are closely related to the differences between the results and the expectations. Risk management focuses on the anticipatory actions by recognizing potential risks and influences. Risk management is part of the entity’s internal control in which the main responsibility is in the hand of the company manager or the entity. Internal auditor as the employee or the internal party has the duty to implement the risk management. Internal auditor conducts an audit process towards internal control and gives assurance in the process of risk management. The internal auditor who takes part in consultation role can assist the organization in identifying, evaluating, and implementing relevant risk management and risk control methodologies. Risk management procedures are identifying risks, constructing plans, and determining solutions. Some of the solutions are avoiding, minimizing, removing, or accepting the risks. Keywords: risk, anticipatory, internal  controlAbstrakRisiko melekat pada suatu aktivitas bisnis organisasi. Risiko terkait erat antara ketidaksesuaian hasil dengan yang diharapkan. Managemen risiko merupakan suatu tindakan untuk mengurangi ketidakpastian yang berfokus pada tindakan antisipasi/pencegahan, dengan cara mengidentifikasi risiko yang mungkin terjadi sekaligus dampak yang mungkin ditimbulkan. Managemen risiko merupakan bagian dari pengendalian internal entitas yang tanggung jawab utamanya di tangan manager perusahaan atau entitas. Auditor internal selaku pegawai atau pihak internal perusahaan juga memiliki tugas atau kewajiban atas pelaksanaan managemen risiko. Audit internal melakukan proses audit terhadap pengendalian internal dan memberikan keyakinan terhadap proses managemen risiko. Auditor internal memiliki peran konsultasi yang dapat membantu organisasi dalam mengidentifikasi, mengevaluasi, dan menerapkan metodologi managemen risiko dan pengendalian yang relevan. Langkah-langkah yang harus dilakukan dalam managemen risiko adalah identifikasi risiko, membuat perencanaan, dan menentukan cara penanganannya. Penangannya risiko dapat dilakukan dengan cara yaitu menghindari, mengurangi, memindahkan, atau menerima risiko tersebut.Kata kunci: risiko, antisipasi/pencegahan, pengendalian internal

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