Archive for the Internal Controls Category


Hedging Your Bets – May 2017

This post involves internal controls. Many financial professionals associate internal controls with such matters as separation of duties, reconciliations, and procedures. We do as well, but also believe internal controls encompass the practice of hedging which is a risk reduction technique. It involves the use of a derivative or similar financial instrument to offset future […]

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Protect Against Risk – Hedging & Insurance – September 2016

This post is about internal controls Many CFOs, when asked about internal controls, speak of procedural and structural matters. These include fundamental internal control principles such as segregation of functions, reconciliations, and authorization procedures. Any good internal control system must have such policies and procedures in place. That said, internal control policies are also necessary […]

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Keep Your Money in Your Company –January 2016

This post is about Internal Controls. Internal controls are procedures the CFO implements to manage risk and fraud. They are an important element of good management in small business, where some sources estimate the median loss due to fraud is $190K per year. Even a good internal control system will never eliminate fraud, but it […]

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Internal Controls and Strategic Initiatives — July 2015

This topic involves internal controls. CFOs have traditionally focused on loss prevention rather than risks that affect the firm’s strategic direction and success, where the CFO can add significant value. This can be accomplished by leveraging internal control principles to achieve strategic risk management. Financial statements prepared under the CFO’s direction indicate what has happened […]

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A Coordinated Approach to Risk Management – October 2014

This topic relates to internal controls. In addition to financial risks, two other major risk management concerns for companies are strategic risks and regulatory risks. While it is common that more emphasis is placed on strategic risks, the CFO must strike a balance between the two. This can be accomplished by a comprehensive and balanced […]

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Risk Reduction Through Monitoring Non-Financial Data – September 2014

This topic concerns internal controls Strong internal controls are crucial for a businesses to detect and prevent fraud, thereby creating a solid foundation for growth. Typically these controls are applied to structured data such as operating statistics and financial data. While this effort is enormously helpful, many businesses would benefit from monitoring unstructured data as […]

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Internal Controls : A Solid Base for Growth – July 2014

This topic involves internal control. Building and maintaining a strong internal control system is a crucial duty of the CFO function. Among other benefits, an effective internal control system helps to insure the integrity of the financial data used to make managerial decisions as well as presented to funding sources. In addition, effective internal controls […]

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Develop a Risk Management Culture – June 2014

This topic concerns internal control. Managing and measuring risk is a key element in running a successful business.  The CFO plays a key role in the process  Most often identifying, measuring, and managing risk is a top down effort.  In recent years, however, many companies have realized that the business has a very valuable perspective that […]

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Use E-Payment to Mitigate Fraud – March 2014

The following addresses an topic regarding internal controls. Any company, large or small, needs robust internal controls to prevent, detect, and respond to fraud.  While progress on fraud prevention and detection is evident on some fronts, many organizations need to improve their procedures to protect themselves against damage from fraud. One of the most common fraud mitigation […]

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