31 August 2023
In this month’s Risk Insider, we provide insights on the issue of effective ESG reporting, the need for a conflict-of-interest standard, Operational Technology Cybersecurity, Business identity theft and Supply Chain Fraud as well as our point of view on Bribery and Corruption Risks. In particular, we explore business’s culture that prevents organisations from achieving targets and lists pragmatic approaches for your consideration.
I would like to also share my views on the paramount importance of a business strategy refresh, in light of inflationary pressures, economic headwinds, geopolitical risk, cost cutting by government and many conflicting so-called leading indicators. Updating business strategy helps organisations remain competitive by prompting a review of changes in the marketplace, evolving stakeholder expectations, and advances in technology. This allows businesses to better respond to new opportunities and challenges while remaining relevant. The exercise also helps identify opportunities to streamline processes, reduce costs and improve overall efficiency.
A refreshed business strategy is a critical component of long-term success. A well-designed and executed strategy can improve your financial performance, weather the impact of a recession and position your business for growth when the economy recovers, soft landing or not. By focusing on the key drivers of growth, such as innovation, efficiency, and stakeholder engagement, a sustainable and resilient business is built that is well-positioned for future success. Consider refreshing your strategy with the following:
Be (even more) digital
Leverage data and analytics to drive and automate decisions – Invest in data management and analysis tools and processes to inform and automate decision-making, improve Board and stakeholder insights and drive innovation.
Foster a digital-first mindset – Promote digital literacy, encouraging experimentation and risk-taking. Provide opportunities for employees to innovate and bring new ideas to life.
Consumers and investors are increasingly environmentally and socially conscious. Addressing environmental, social, and governance factors improves your reputation and creates new business opportunities. ESG is simply good for business—leading to increased sales, improved pricing, higher margins, better talent acquisition/retention, and higher valuations.
Building strong relationships with local stakeholders, such as government agencies and suppliers, is critical to success in new markets. Understand local business practices and develop a strong network of local contacts.
I hope you enjoy this month's edition of the Risk Insider and would like to thank you on behalf of RSM for subscribing to this newsletter.
INTERNAL AUDIT AND RELATED SERVICES TO THE FEDERAL GOVERNMENT SECTOR
Learn more about RSM's expertise in the Federal Government.
RSM has a long history of providing a wide range of value added internal audit and related services to the federal government.
SPOTLIGHT - SUSTAINABILITY MATTERS
Episode 3: Unlocking the Power of Data for Effective ESG Reporting
In our third episode of Sustainability Matters, we explore the challenges organisations may face along the data maturity curve and gain valuable tips on how to overcome these obstacles to help shape strategic decisions, enhance transparency and embrace progress.
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Does Australia need a conflict-of-interest standard?
The continuing controversy over conflict-of-interest and confidentiality breaches in Australia has sharpened public attention on what can go wrong when checks and balances fall short and trust is eroded.
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Operational Technology Cybersecurity
The time to protect your critical OT environments is NOW and RSM is uniquely positioned to assess, quantify and manage your OT Cyber risks.
Cultural audits help identify risks and hit targets
Your business’s culture may be preventing you from achieving targets and increasing risk, but a cultural audit can identify culture strengths and weaknesses and make recommendations for improvement.
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Business identity theft – a growing fraud trend
Business identity theft is a popular and growing tactic that is being used by fraudsters across the globe. Any business can be affected by business identity theft and therefore all businesses should consider any associated risks and control mechanisms that can be used to combat this emerging scheme.
Safeguarding the Manufacturing Industry: Mitigating Supply Chain Fraud and Bribery and Corruption Risks
In today's increasingly complex business landscape, the manufacturing industry faces substantial risks related to fraud and corruption. In fact, according to the ACFE’s 2022 ‘Report to the Nations’, businesses lose 5% of revenue to fraud every year.
Boundaries of the CDR Data Environment
The CDR data environment involves identifying the people, processes and technology that manages, secures, stores, processes, transmits or otherwise interacts with CDR data. CDR data also includes any data derived from CDR data. We describe CDR data as being toxic, contaminating any derived data or systems with the CDR Rules.