Risk management, compliance and internal control systems
15.09.2016 - German companies still have significant room for improvement to achieve optimal synergy of risk management, compliance and internal control systems. Particularly at the executive level, not enough responsibility has yet been accepted when it comes to effective risk management, as shown by a study conducted by Funk Consulting together with Roever Broenner Susat Mazars.
Further development of risk management, compliance and internal control systems is gathering way in German companies. The majority of companies – around 72 per cent – recognise that an integrative approach to these three systems makes risk easier to manage and therefore creates added value from a business management perspective. But the fact of the matter is that this theoretical knowledge is not being implemented sufficiently in practice.
As the study shows, the individual systems still continue to exist as isolated solutions. Only 18 per cent of the companies surveyed indicated that a constant exchange between risk management, compliance and internal control systems is ensured in their businesses.
‘In light of the fact that management boards are responsible overall for the effectiveness of risk and compliance management, we consider this percentage to be much too low,’ states Ulrike Meyer, the risk management expert at Funk Consulting in charge of conducting the study.
The study also reveals that the opportunity to use the added value of each individual component of risk monitoring in further development into an integrated system for business management purposes is lost. The advantage of combining risk management, compliance and internal control systems lies essentially in the improved overview of relevant risks. It also creates a better synergy between otherwise unlinked processes to achieve more efficiency, which naturally brings commercial advantages.
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