Complexity Drives Key Business Risks for 2017
Boards, Audit Committees and Executives Need to Prepare for and Manage the Unintended Consequences of Growth and Global Expansion, According to CEB
ARLINGTON, Va., Jan. 10, 2017 /PRNewswire/ -- CEB (NYSE: CEB), a best practice insight and technology company, has identified the major risks that boards, Audit Committees and executives need to prepare for this year. The increase in business complexity and the associated, often hidden, implications of it contribute to several risks that Chief Audit Executives (CAEs) plan to watch closely. "The smallest Fortune 500 company is now five times larger than in 1990, and as organizations have grown, they have seen significant cost savings," said Malcolm Murray, Audit research leader, CEB. "However, increasing size and geographic spread also lead to complexity, which in turn increases the cost of coordinating activities across the organization. But the implications of complexity are often hidden, making them difficult for executives to assess and manage." The increase in complexity contributes to several risks that are top of mind for CAEs in 2017:
"Most executives aren't surprised by these risks, but they struggle to understand what to do about them," Murray said. "The CAE can strengthen corporate assurance by identifying and tracking these risks in the business and help management prepare to mitigate them." In addition to the hidden costs of growth and complexity, the other risk themes CAEs are watching this year include digitization, volatility in the macro environment and heightened public scrutiny. CEB creates its annual Audit Plan Hot Spots report by combining input from interviews, surveys and audit planning documents from across its network of member companies. For more information and to download an excerpt of the report, visit CEB. About CEB CEB is a best practice insight and technology company. In partnership with leading organizations around the globe, we develop innovative solutions to drive corporate performance. CEB equips leaders at more than 10,000 companies with the intelligence to effectively manage talent, customers, and operations. CEB is a trusted partner to nearly 90% of the Fortune 500 and FTSE 100, and more than 70% of the Dow Jones Asian Titans. More at cebglobal.com. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/complexity-drives-key-business-risks-for-2017-300387969.html SOURCE CEB |
|