In the current regulatory environment, can you think of any issue that looms larger than business risk? Increasingly, business risk is linked with tax matters. In fact, tax risk today goes well beyond your company’s relationship with tax authorities. It can have an impact on virtually every area of your business, including strategy, operations and even corporate reputation.

Some senior executives, especially from outside the tax function, might ask whether existing compliance efforts cover their tax risks adequately in the new environment–particularly efforts involving Sarbanes-Oxley section 404. The simple answer is no. From a compliance perspective, Sarbanes-Oxley section 404 represents the tip of the tax-risk iceberg.  It focuses on financial statement risks. Companies should consider financial statement risks, as well as other risks cited by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission, including efficiency, effectiveness of operations, and compliance with applicable laws and regulations to help achieve sustained compliance. Focusing solely on financial statement risks ignores other risks that can be just as devastating, such as reputation risks.

Global opportunities–and risks–are growing steadily.  An integrated approach to Tax Risk Management can address these opportunities and challenges head-on, helping you to identify and resolve tax risks to your organization.