Big4Guy

Any business function today has to be accountable. Having said that Accountability is affected by a number of risk factors. Any organization should be aware of the following three risk factors that can affect accountability. I have listed down the risk factors with examples for each of them so that it is clear to readers what exactly I am referring to.

Risk Factor 1 - Factors affecting the effectiveness and efficiency of operations. These normally include poorly defined goals, use of old technology, staff not fully trained on business processes etc. This list can be tailored according to your organization.

Risk Factor 2 - Factors affecting complaince with laws and regulations. Non-complaince can put the entire comapny at risk. This may be a result of not monitoring new legislations affecting the entity. Non-compliance can result in severe penalties and can affect the going concern of an organzation.

Risk Factor 3 - Factors affecting reliable financial reporting. Sarbanes Oxley has stressed on strong financial reporting. However risk factors here might include, weak audit trail, improper reconciliation procedures defined, lack of segregation of duties, improper authorizations etc.

These risk factors existed from time immortal, but Sarbanes Oxley has again stressed on the same with renewed thrust. Any company which takes the above mentioned risk into considerations is sure to have a secure future.