HELP US IMPROVE INTERNAL CONTROL SYSTEMS WORLDWIDE
The Internal Control Institute™ (ICI) improves organizational Internal Control worldwide by providing training, products and services and individual Professional Certifications recognized internationally. The Institute's Board of Advisors has determined it would like to further expand into areas where it is not directly represented. ICI provides world-class programs and its intellectual property to affiliates free of charge and shares all program revenue with them. If your organization is interested in partnering with ICI to earn revenue while you contribute to the development of the internal control profession worldwide please contact Dr. Michael Pregmon, Jr., Chief Operations Officer, by email at: firstname.lastname@example.org or by phone at 727-538-4113in the USA.
The Internal Control Institute has developed a CICS Common Body of Knowledge Mini-Assessment that helps an individual determine their knowledge as it relates to governance and control practices. Results point out areas of knowledge that may require additional training and experience. The assessment also provides a measurement to the individual's readiness for CICS certification. The assessment measures core knowledge in eight critical areas including: Internal Control - Principles, Terms and Concepts, Internal Control Environment, Risk Management, Assessing Application Controls, Business System Control Assessment, Risk Assessment, Internal Control Measurement and Reporting, and Governance Practices
Start becoming an Internal Control professional today!
The ICI "Certification Series" has been completely updated and is available online to everyone around the world! Course content prepares individuals to design and/or assess internal control and to assist management in installing internal control processes. In addition, the series prepares candidates for the Certified Internal Control Specialist (CICS) Examination.
Online course pricing has been reduced by over 70%
Business Strategy - How Do We Get There?
By Michael Pregmon, Jr., Ph.D., CICP
Dr. Michael Pregmon, Jr. COO and Managing Director
We have been presenting a business planning process in previous editions of this newsletter. We previously touched upon the first two sections of the complete process. To recap the seven sections required, these are answering the questions:
Where are we?
Where do we want to go?
How are we going to get there?
Who is responsible?
How much will it cost?
When will it be done?
Completing the feedback loop
In this brief article we will address the third section. This section essentially identifies the strategies the organization/activity will implement to accomplish our planned goals or eliminate challenges. We previously identified these in section 2.
Each action item identified in section 2 must be individually addressed and analyzed. The brainstorming technique can often be used effectively here. A plan of action (strategy) should be devised to eliminate the challenge. Usually each of these challenges are new innovative initiatives, problems, visions, and/or competitive issues.
It is not uncommon for some action items identified in section 2 to be related or intermingled unintentionally which makes implementation difficult.
For this planning process, specific strategies should be devised and implemented to address each goal, problem, competitive issue, etc. identified in section 2.
The strategy for each action item must be specific and uniquely devised for the particular "issue" identified. Planners oftentimes use "catch all" strategies that are unrealistic in the "real world." This typically results in attempts to simplify a strategy or to reduce the cost of implementation.
Ensure that the strategies devised for accomplishing a goal do not conflict with a strategy for another challenge.
REMEMBER - Each individual plan goal/target should have its own individual strategy for effective implementation.
ICI Affiliate News:
The Internal Control Institute is conducting certification training in a classroom format for the internationally recognized CICS (Certified Internal Control Specialist) certification in internal control. Information on these programs regarding dates and schedules can be found on the Events tab on our Website or directed to the affiliate named below:
ICI has entered into an agreement with Internal Control Institute of Botswana (ICI Botswana":) as its representative for Products, Services and Internal Control Certifications (CICS/CICP) in this territory. ICI Botswana will be responsible for all development activities in this area, including professional training and Certification. Individuals or companies interested in internal control training or Certification should contact:
CICS Training in Dutch in Brussels with 13 participants will take place in seven sessions over the period 4 October 2019 to 10 January 2020. ICIB has
already received 9 registrations for the session in French starting mid January.
For more information on scheduled training and exams please contact Mr.Yves Dupont of ICI Belgium at:
Better Business Governance - APAC PTE LTD (BBG) has become a representative for Products, Services and Internal Control Certifications (CICS/CICP) in Myanmar and Cambodia.
Better Business Governance will be responsible for all development activities, including professional training and Certification. For more information on upcoming activities in this area please contact:
ICI has entered into an agreement with GRC Consultancy Pte Ltd. (ICI Singapore, Malaysia, Indonesia and Taiwan) as its representative for Products, Services and Internal Control Certifications (CICS/CICP) in those territories.
Individuals or companies interested in internal control training or Certification should contact:
ICI has entered into an agreement with Business and Financial Consulting company in the Republic of Tunisia (hereinafter referred to as "ICI BFC" as its representative for Products, Services and Internal Control Certifications (CICS/CICP) in the Republic of Tunisia
. ICI BFC will be responsible for all development activities in this area, including professional training and Certification. Individuals or companies interested in internal control training or Certification should contact:
On Saturday and Sunday 08:30 am - 12:00 am 13:30 pm - 17:00 pm
For more information on upcoming activities in Vietnam please contact: NGUYEN THANH TUNG (MBA. M.Eng, PhD.) Director, FMIT Institute of Financial Management & Information Technology, Level 5, 126 Nguyen Thi Minh Khai Street, Ward 6, District 3, HCMC, Viet Nam
Each month the staff of The Internal Control Institute reviews hundreds of articles related to Internal Control and Corporate Governance. Here are brief summaries of some of the top articles (along with links to the original article) that may be of interest to you.
As the old saying goes, "Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime." The same could be said for preventing phishing attacks. Put an antivirus program on someone's computer and it might keep their computer protected until it's outdated. Teach someone what warning signs to look for, and they will be less likely to be the latest victim of a phishing attack during their tenure at the company.
Cyberattacks typically begin with a phishing email. In fact,
studies have shown that 92 percent of malware is delivered by email and the average user receives 16 phishing emails per month.
It's not just individual employees who are at risk either. Businesses are often the target for these emails. Ninety five percent of attacks on business networks result from successful spear phishing - super targeted attacks aimed at deceiving a specific person. Many companies are leaving an opening for this to occur as well. According to Check Point Research's 2018 Report on Information Security, 97 percent of organizations are using outdated cybersecurity technologies.
The Committee of Sponsoring Organizations of the Treadway Commission COSO) has confirmed plans to issue guidance for use of blockchain technology early next year, the Wall Street Journal
reports. The guidance will reportedly target leaders in the financial services industry and other sectors and companies where blockchain technology is being utilized.
According to the Journal, the guidance will be designed to help companies using the technology improve oversight of their blockchain projects. COSO chairperson Paul Sobel told WSJ:
"I want to make sure that we've got that properly controlled because it is a very different view of the world when you have distributed ledgers. It isn't something that is contained in your own system."
During tax season, a tax professional can be placed in the difficult position of trying to stop tax fraud after uncovering their employer or client committing fraud.
In a healthy workplace culture, dissent is tolerated and indeed encouraged. But where an accountant, tax professional or tax attorney suffers retaliation for raising concerns about tax fraud or violations of IRS regulations, does the worker have a remedy? And does a whistleblower reporting fraud to the IRS Whistleblower Office have any recourse if they suffer retaliation? Until recently, there was no federal law protecting whistleblowing about tax fraud and scant protection at the state level. In 2019, however, Congress enacted a robust law protecting tax whistleblowers. This article summarizes the whistleblower protection provision of the Taxpayer First Act.
A twist, but hopefully not twisted . . . a slightly different take on developments likely to impact corporate governance in 2020. A list that doesn't mention shareholder activism, cybersecurity, climate risks, nor SEC regulation. What follows are perspectives offered from a slightly higher altitude but still within sight of the tarmac. Directors will be expected to confront the tactical and strategic implications to their company of any potential political, social, economic or regulatory volatility. Such uncertainty will be driven in part by the impeachment process, divided government and the 2020 elections, Other drivers may include questions concerning economic growth, trade conflict, income inequality, inflation and, more generally, continued societal fragmentation. To address these challenges will require directors to exercise more engagement, heightened attentiveness and close interaction with management.
Boeing CEO Dennis Muilenburg is the latest casualty in a string of chief executive exits this year. Through November, 1,480 CEOs left their companies in 2019, according to business and executive coaching firm Challenger, Gray & Christmas. That's the highest number on record for the first 11 months of a year. December has brought other high-profile resignations including the chief executives of United Airlines, Alphabet, Expedia, SoulCycle and Away, which would make 2019 the highest year on record for executive departures.
The National Association of Corporate Directors' ("NACD") annual Public Company Governance Survey (the "Survey") is an important resource for corporate boards and their primary committees.
The 2019-2020 version of the Survey offers timely information on key governance practices and attributes. To be sure, at year end boards are typically flooded with well-prepared reports from a variety of estimable sources. Yet through the breadth of its data and its related analysis, the NACD Survey stands out as a particularly valuable briefing tool. This, not only for public company boards, but also for those of large private and nonprofit companies.
MUMBAI: The number of independent directors who resigned from board positions doubled in 2019, compared with total exits in the previous two years, as greater liability, rising number of corporate governance cases, increasing fear of fraud risk and chances of personal reputation being at stake led to the exodus.A record 1,393 independent director posts were vacated this year, compared with 767 in 2018 and 717 in 2017, according to data from market tracker nseinfobase.com, run by Prime. Over 550 directors exited citing unspecified "pre-occupation," personal reasons or without citing any reason. Other reasons for exit included change in management, conflict of interest, and investigation by regulatory bodies. Close to 120 board members said they are "not interested in reappointment."
The growing size and complexity of the Indian financial system underscores the significance of strengthening corporate governance standards in regulated entities, RBI said in its report. The central bank had earlier found major irregularities in PMC Bank, including major financial violations, failure of internal controls and systems, and wrongdoing and under-reporting of its lending exposure.Taking cues from the incidence of corporate governance lapses in the year, the Reserve Bank of India (RBI) is in the process of issuing draft guidelines on corporate governance for regulated entities. The banking regulator cautioned in a report on trend and progress that recent governance failures in some financial entities have brought to the fore the impact of the quality of corporate governance on efficiency in allocation of resources as well as on financial stability.
PETALING JAYA MALAYSIA: There has been no shortage of corporate news over the course of 2019. From failed mergers to lawsuits, here is a look at some of the most notable happenings that were reported during the year.
If you see a news story concerning internal control or corporate governance that you feel is important for other professionals to know please send it to us .
The Internal Control Institute™ (ICI) is a worldwide organization devoted exclusively to internal control and corporate governance. The Institute is dedicated to the development of world-class educational programs and best practice guidelines on internal control and corporate governance, based on the Sarbanes-Oxley Act and the COSO internal control framework. Visit us on the web at the Internal Control Institute
Control Chatter is a monthly news summary of the top stories concerning internal control and corporate governance. Control Chatter is prepared by the staff of Internal Control Institute for the benefit of their members and associates. Please consider it for your personal use or pass it on to associates who may have an interest in one or more of the topics by clicking on the Forward email button below.