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Operational Controls to Protect & Grow Shareholder Value
Organizations need to constantly be on the lookout to improve their operational control design and performance. This will enable companies to efficiently and effectively meet their strategic objectives, including strengthening their bottom line. Simply put, operational controls are organizational processes, defined by policies and procedures, to help reach a wide range of objectives other than financial reporting or compliance. They are often misunderstood and neglected to the detriment of the organization. Internal controls over operations are essential in keeping a company on course toward profitability goals, accomplishing strategic goals and objectives, customer satisfaction, etc. all in the name of preserving or growing shareholder value. Internal controls can be a means to promote efficiency, mitigate risks, and help ensure internal compliance to best reach operational objectives.
Unfortunately, some companies took their eyes off of operational controls thanks largely to Sarbanes-Oxley Act (SOX), which required boards, management teams and internal auditors to focus more attention on financial reporting objectives. While financial reporting objectives remain obviously important, the lion's share of value-add rests with operational controls. Fortunately, many of the tools and processes enhanced through SOX-related controls can be successfully applied to operational objectives. Candela Solutions works with companies to design and test the efficiency and effectiveness of operational controls.
One such tool is COSO's (Committee of Sponsoring Organizations) Internal Controls-Integrated Framework, which provides an authoritative framework for documentation and evaluation. This framework identifies three objectives:
It is the first of these three board objective areas that relate to 'operational' controls. The Internal Controls--Integrated Framework provides a powerful thought process towards understanding and executing controls to mitigate risks and enhance business value. Do not fall victim to the trap of passing this off as a non-value-added concept. To the contrary, it often can provide the competitive advantage for success.
Another COSO framework we work with is the Enterprise Risk Management--Integrated Framework. This framework is not intended to supersede the original Internal Controls-Integrated Framework, but rather defines enterprise risk-management components more thoroughly.
The Candela Solutions' team brings a wealth of diversified expertise to enhance the operational control environment to best meet operational objectives, as well as compliance and financial reporting objectives.
Refer to related in-house training sessions:
Candela Solutions LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org. NASBA Registry sponsor Id is 112563.