Future of Controls

What stands behind Future of Control

We are operating in a period of unprecedented uncertainty with rapid advances in technology (AI/ML, e.g ChatGPT and alike), the aftermath of a recent global pandemic, increasing geopolitical instabilities with major impact on local and global economies through inflationary and supply-chain crises and other disruptors. Accordingly, organizations are working to develop more effective and efficient internal controls for their companies.

Organizations want to design and implement controls that help guide them through their stated mission and create value for the business, their employees, and society.T

oday as we talk about the future, we see three key levers shaping the future of controls:

Internal control transformation

Internal control transformation should be based on some key levers and hence, it is an iterative process, we like to see it as a journey: The Internal Control Transformation Journey!

Why to consider the future of controls?

With digitization of risk inherent in S/4 landscape, compliance and control function become increasingly crucial to consider throughout implementation lifecycle.

Considering control transformation as a journey to be initiated early in the project to avoid demanding and expensive internal controls retrofitting.

Opportunities

The business case generates ongoing savings and reduce Total Cost of Controls up to 20-30% annual savings in current cost of compliance and controls.

Risks: What could go wrong?

When companies fail to include a control function with their system migration program, several things could go wrong.

How we deliver future of controls?

Internal Control Testing Workflow is a process used by auditors, accountants, or risk management professionals to test and evaluate the effectiveness of a company's internal controls. This process helps to identify weaknesses in the internal control system and ensures that the company is complying with laws and regulations while mitigating risks.

Internal control transformation relates to the gradual paradigm shift from pure manual controlling to digitally enabled activities.

Automated controls

In today's technology-driven world, business processes and applications play a crucial role in the success of any organization. As a result, it has become increasingly important for companies to establish effective business process and application controls that safeguard their operations and assets.

To illustrate this, you will find below examples of business process and application controls that companies can implement to ensure their operations run smoothly and securely. From financial reporting and inventory management to HR and customer relationship management, these controls provide organizations with the tools needed to help mitigate risks and enhance overall performance. Let's take a closer look at the different types of controls available and how they can benefit organizations in various industries.

Digital extended controls

Digitalization of a configurable control involves the integration of digital technology into a control system that can be easily programmed and configured to meet specific requirements. This process typically involves replacing traditional control systems that rely on manual adjustment with digital components that can be configured through software interfaces.