Future of Financial Controls for FI Summit

The Challenge of Building Controls Into an Effective Process
Can a process have the right controls and produce accurate results while also being effective? Sure! Not only is it possible but an efficient process with the right controls is likely to produce more accurate results. Financial institutions are responsible for protecting the integrity of the information collected, analyzed, and reported. From the data used to make lending decisions to deposits in customer accounts to the preparation of financial statements, data accuracy is essential to most banking operations. Internal controls are the systems, policies, procedures, and processes that a bank relies on to operate safely and soundly. It is important to note that while effectiveness and efficiency are not specifically included in an internal audit or regulatory review, they are the first items to be recognized as a primary goal, as an effective and well-thought-out control framework will operate more effectively. Read more

Understanding Financial Controls
Financial controls enable an organization to determine its financial resources' direction, allocation, and use. As a result, the company can make wise spending decisions by maintaining goal-based financial responsibility in line with its current situation and forecast. This strategy involves reviewing the actual performance of the company against the business plan and adjusting policies and procedures to deal with any irregularities or unforeseen changes. In simpler terms, financial control is necessary for the formulation of an organization's strategies and policies. It not only reduces costs but can streamline the entire process, leading to increased profits. Its absence can sow chaos in the system. In general, businesses need to monitor and control their financial resources to achieve their goals. It provides insight into identifying new business opportunities and refining processes to optimize performance while meeting regulatory and industry standards. Read more

Realizing the Future of Checks
Long before the pandemic, the industry adopted digital processes and a mobile banking model. During this adoption, as new technologies are integrated into existing systems, new controls are often implemented in a way that leaves gaps or creates redundancies, leaving many environments with control needs that require special attention. At the same time, the industry faces an increasing focus on non-financial risks. These include security, cybersecurity, reputation, regulatory, environmental, social, and governance risks. In a recent survey, 47% of respondents said their organizations would have an extremely or very high priority to improve ESG risk management over the next two years. (Only 33% of respondents consider their organizations to be extremely or very effective at managing ESG risks.) Now is the time to determine if your controls are still appropriate to manage your organization's risks and take steps to address cost, complexity, and scope issues. microinsurance in a controlled environment. Read more