Tools

The following tools were published on KnowledgeLeader this week:

Managing Country Risk Questionnaire

The Managing Country Risk Questionnaire serves as a strategic guide, empowering organizations to confidently tackle the challenges and seize the opportunities inherent in international investments. By providing frameworks for risk assessment and management, this tool equips decision-makers with the insights needed to identify potential threats and refine strategies accordingly. It emphasizes the importance of proactive evaluation of country risks, ensuring that businesses can protect their investments and sustain acceptable returns in an increasingly volatile global landscape. Equipping this tool enhances understanding and fosters a culture of risk awareness, making it imperative for any organization to thrive internationally. 

Treasury Security Review Audit Work Program

Unlock the potential of your organization’s financial security with this Treasury Security Review Audit Work Program, a tool designed to fortify treasury operations and enhance IT controls. This robust tool guides internal audit teams through critical risk areas, including segregation of duties, application and database security, user access management and system configuration. By outlining clear steps for interviewing key personnel, analyzing access rights and validating security protocols, this program ensures that every aspect of treasury security is scrutinized from how users are granted and revoked access, to the protection of sensitive directories and databases. The methodology emphasizes both thoroughness and practicality, making it straightforward for teams to identify vulnerabilities, confirm compliance with company policies and document findings for management review. 

Bad Debt Policy

Our Bad Debt Policy is for organizations aiming to enhance their financial management practices. By establishing consistent methods for calculating bad debt reserves, referring accounts to collection agencies and charging off uncollectible amounts, this policy maximizes cash flow and ensures that accounts receivable is accurately stated. This approach helps businesses mitigate financial risk while maintaining a healthy balance sheet, making it a valuable tool for decision-makers seeking to optimize their financial strategies. 

Record Management Policy

Effective record management is the backbone of operational efficiency and compliance for businesses. This Record Management Policy provides a structured approach to organizing, retaining, and disposing of company records while adhering to legal and regulatory standards. This tool equips organizations with the capabilities to safeguard sensitive information, reduce unnecessary storage costs and ensure timely access to critical documents. Designed for ease of implementation, it helps businesses mitigate risks associated with data mismanagement and fosters a culture of accountability and systematic record-keeping. 

Going Concern Policy

Our Going Concern Policy is essential for organizations seeking clarity and confidence in their financial reporting. This document guides management through the process of evaluating whether there are any conditions or events that might cast substantial doubt on a company’s ability to continue operating for the foreseeable future. By detailing the steps for assessing both internal and external risks from negative financial trends and legal proceedings to key customer losses and market disruptions, this policy ensures that decision-makers have a clear framework for identifying threats early and preparing thoughtful responses. The inclusion of practical guidance, such as cash flow forecasting and liquidity analysis, empowers teams to weigh all relevant factors and make informed judgments about their company’s financial health. 

Publications 

KnowledgeLeader has also published several publications this week.

Strengthening Decision Making With OSFI’s E-23 Model Risk Management Guideline

Organizations are increasingly challenged to effectively manage the risks associated with their reliance on advanced decision-making tools, such as artificial intelligence and machine learning. To address these challenges, a framework for model risk management can be transformative. This approach calls for robust governance structures, rigorous validation protocols, and continuous monitoring to ensure models are accurate, reliable and aligned with strategic goals. By defining clear roles and responsibilities, maintaining a centralized inventory of models, and conducting independent validations, organizations can mitigate risks tied to model inaccuracies and biases while enhancing operational efficiency. 

The Cybersecurity Blind Spot in SOX Compliance and How to Fix It

Cybersecurity threats are evolving fast, and recent ransomware attacks have highlighted the need for organizations to move beyond traditional compliance standards like SOX. Many organizations rely on IT controls designed for financial reporting, but these miss crucial vulnerabilities like gaps in ransomware preparedness, third-party risks and real-time threat detection. To truly safeguard operations, reputation and regulatory standing, companies must look beyond the basics and embrace a broader approach to cyber resilience. 

Head of Cyber at Crowdstrike on Emerging Risks, Identity Exploitation, Data Leaks and AI Wars

As the world of cryptocurrency continues to evolve, so does the regulatory landscape that governs it. With the crypto market now soaring beyond $4 trillion, financial institutions are faced with the urgent need to navigate complex compliance requirements across various regions, including the U.S., U.K., EU and APAC. Understanding the intricacies of frameworks like the GENIUS and CLARITY Acts in the U.S., MiCA in the EU and the U.K.'s phased regulatory approach is crucial for organizations aiming to stay ahead. These insights help mitigate risks and empower businesses to seize opportunities for growth and innovation as crypto adoption accelerates.

Recommended Resources 

This list of recommended resources from the web may be of interest to you. Click each link to learn more. 

1. AICPA Releases Gen AI Tool: Josi
2. More than Just Good Ethics: New Research Links Board Committee Diversity to Better Investment Decisions
3. How to Craft Proxies That Gain the Trust and Support of Your Shareholders