Author: Alina Făniță, CEO, PKF Finconta
Technological advances and hyperconectivity reformulate the criteria that define trust in companies. The online environment spreads the messages at an unprecedented speed. Data theft or fraudulent behaviors, when they appear, are no longer just a matter solved internally by companies. Public opinion is increasingly well informed and has stronger benchmarks about unacceptable behaviors or the protection of personal data.
To manage risk and build trust, the financial directors of large companies are concerned with two issues:
1. Integrating advanced analytics technologies for managing risk, volatility, and regulatory compliance.
2. Reviewing established approaches in the context of rapid technology advancement and changing business rules and norms. Thus, legislative norms and accounting standards become the subject of readjustments in response to these changes.
Collaboration inside the company is essential in the era of connectivity
Teams that manage to collaborate trans-organizationally get two major benefits:
1. Come to a clearer understanding of the correlation between risk and business information management. That is why the integrated approach to information governance responds to legislative requirements such as international standards or EU legislation.
2. Manage the growing data volumes without losing understanding and control over the type of information and the place where it is stored. Under GDPR terms and conditions, companies are at risk of not being able to identify data they are deleting, as required by this regulation.
Managing the challenges of new technologies with a focus on data security
Companies face significant obstacles in implementing new innovative systems. Concerns about information security in the cloud are the number one obstacle to technological innovation in financial services.
Advancing technology and increasing information volumes should give companies the chance to wonder whether the information they present to internal audit teams and the board has evolved in line with technological progress. In fact, the quality of the debate and decision-making at the top management level also depends on the effectiveness of the supervision of how it operates.
Because internal controls, compliance and organizational culture, as well as fraud prevention are increasingly important, audit teams and supervisory boards look for people with database analysis skills.
Higher data quality and new technologies open up a new era of corporate governance
Advanced analytics technologies not only help the financial function perform differently but also add more value and provide confidence to all non-financial stakeholders involved. They provide a real-time, low-cost image with automatic risk-mitigating control.
Bringing it all together
Performing reporting teams are based on different types of data and capitalize on technological advances. They provide quality information to stakeholders, with decision-making responsibilities, to fulfill their role. Board members use these historical and predictive data to have a complete understanding of the framework in which they decide.
Data management as a strategic asset of the company, the transition of financial thinking to the integration of new technologies, and the challenge of traditional management structures to accept the paradigm shift should concern companies if they want to have the framework for informed decision-making in the future.
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About PKF Finconta
For more than 24 years, PKF Finconta is one of the 10 leading professional services companies in Romania. Since 2006, we are a member of PKF International Limited. PKF International is a leading international business advisory organization. The company grew consistently over the years, forming a Group of four companies: PKF Finconta, PKF FincontaConsultanta, PKF Finconta HR and Finconta Consulting SPRL, members of national professional organizations CECCAR, CAFR, CCFR, and UNPIR. We provide a wide range of business advisory and related specialist services. We have seven core areas of expertise and within these areas, we tailor our services to your business and your needs: audit, corporate finance, tax, bookkeeping and accounting advisory services, transfer pricing, payroll and personnel administration, and insolvency.