Take Control of Your Spreadsheet Risk
Your spreadsheets are important and so are the compliance risks they carry.
Continue reading or get our Spreadsheet Risk Management Policy Guide now.
Spreadsheet Risk & Consequences
Spreadsheets, while highly flexible & easy to use are subject to human error, lack internal controls, and are easily manipulated, intentionally and mistakenly, making them key drivers of risk within organizations. This is particularly true when you consider compliance mandates are not just restricted to the US but are truly global:
Spreadsheet errors have proved to be and continue to be extremely costly financially and reputationally.
Even the smallest of changes to a key spreadsheet can have lasting impacts that often go unnoticed until it’s too late, resulting in material misstatements, fines, material weaknesses, and loss of investor confidence.
Material spreadsheet arithmetic error leads to profits being exaggerated by over $5M. Conviviality collapses after losing over 60% of its stock value.
Double counting in a spreadsheet leads Marks & Spencer to issue a correction in it’s quarterly trading statement after misreporting group sales figures.
Errors within a Value at Risk (VaR) spreadsheet contributes to a $6B+ loss.
Effectively managing the risk spreadsheets bring to the business is a top priority for regulators today and should be part of every company’s risk management program. Managing critical spreadsheets may seem daunting, but your organization can be successful with the right people, process and technology.
Spreadsheet Risk Management
Find your champions within senior management and get them on board. Educate them on the regulatory controls that impact your spreadsheets and the industry best practices your organization needs to evidence compliance. Define the roles, responsibilities, and processes associated with the spreadsheets in your organization. Then, find a solution that will support your process by increasing efficiency, strengthening controls, automating workflows and reducing the end-user burden.
Apparity’s spreadsheet risk management policy guide will give you a strong starting point to defining your organization’s spreadsheet management program.