This post involves internal controls.  Risk management involves more than financial issues, but is often the responsibility of the CFO.  From a broad perspective, the CFO must consider several factors:  risk identification; risk quantification issues; and risk planning.                The first step in risk management is to determine which risks may be most applicable to […]

This post concerns Internal Controls. A crucial task for the CFO is to produce accurate and timely financial statements. To accomplish this effectively and efficiently, a robust internal control system must be in place. Such controls apply to various line items on the financial statements as well as general controls that introduce some organizational structure […]

This post involves internal controls. Every business needs a system of controls that minimize the risk of financial loss from theft or carelessness. In addition, internal controls help prevent mistakes that result in inaccurate information. The CFO is instrumental in ensuring that the firm has a sufficient control system to avoid these pitfalls. A good […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]