Keeping Your Audit Committee Current on Risks

internal audit

I spent a lot of time these days reading audit committee charters, to see how boards address risk management. I’ll be giving a talk on that subject later this year at the Society of Corporate Compliance & Ethics annual conference, and what better way to prepare than to go straight to the raw material? How…

Read More

More Clues on Draft ERM Framework

erm framework

COSO Chairman Robert Hirth visited Boston yesterday, speaking to the CAE Leadership Forum about COSO’s proposed new framework for enterprise risk management. I was lucky enough to attend and Hirth raises some excellent points about how COSO wants to help companies implement ERM, so let me recap the highlights here. First, we mentioned in this…

Read More

Draft ERM Framework Is Here! How to Get Started

erm framework

Sharpen your pencils, all enthusiasts of enterprise risk management: COSO has unveiled its new draft framework for ERM and is calling for public comment. The exposure draft is available on the COSO website, and the comment period runs from now until Sept. 30. This is COSO’s first update to the ERM framework, which it originally…

Read More

Impairment Data Hints at Problems Ahead

You gotta love goodwill. It seems like such a simple concept in financial reporting, yet somehow it can drive corporate accountants, compliance officers, auditors, senior executives, and financial analysts all crazy. For the non-accountants out there (and we’ll explain why goodwill matters to you shortly), goodwill is the value a company assigns to the intangible…

Read More

How BP’s Board Undermines Its Drive for Compliance

First let me assure you that today’s post will not be yet another column castigating BP, its board, and its CEO for runaway executive compensation. We could spend lots of time talking to that point, certainly. What happened at BP’s annual shareholder meeting last week was appalling. In 2015 BP racked up the largest loss…

Read More

Why Compliance Matters: Credit Suisse Edition

Credit Suisse

By now you may have already heard that Credit Suisse is cutting another 2,000 jobs from its investment banking operations. That’s unfortunate news for the 2,000 bankers soon to be unemployed, but compliance officers on Wall Street have another lesson to absorb here. The real news for compliance professionals—or anyone else working in finance who…

Read More

Why Corporate Culture Is So Maddening a Challenge

goals

I don’t know that corporations will ever “solve” the predicament of building and maintaining an ethical corporate culture—but an excellent new report from the International Corporate Governance Network at least sheds more light on how intractable the problem is. The report summarizes a recent roundtable the ICGN held with the Institute of Business Ethics and…

Read More

Lucrative Trends Only Getting Bigger in Compliance

Last week a mid-career compliance professional, someone with significant experience in the financial regulatory world, dropped me an email to say he is taking an early retirement buyout. So what compliance fields, he asked me, are likely to see healthy career prospects for the next 10 years or so? To my thinking, the trick to…

Read More

Toward Better Boards, and More Diverse Boards

board

Well, apparently now it’s the nominating and governance committee’s turn to be hammered on the anvil of corporate governance reform. We see the evidence everywhere: a report from the Government Accountability Office noting that at current pace, women will represent half of all seats on corporate boards sometime around 2055. Calls for more women, minorities,…

Read More

The Board’s Role in Resilience: A Limited One

Yesterday I had the privilege to participate in a corporate governance forum in New York, talking about the board of directors’ role in building corporate resilience. Resiliency is a popular buzzword in governance circles these days, so I want to recap some of the main points here—because while I agree that the modern company absolutely…

Read More