Investors are expecting growth that exceeds expectations and tend to avoid unknown risks. In the current complex macroeconomic situation and volatile external conditions, companies that are good at managing risks and giving certainty to the market can be more favored by investors.
Compliance and growth are key factors that support the market capitalization of listed companies. Statistics show that the market value of listed companies with sound corporate governance will be significantly higher than the average level. Enterprises need to make good use of the power of digitalization to strengthen risk monitoring and strengthen the ability to effectively integrate strategy, business, finance and compliance systems.
Enterprises need to strengthen their risk capabilitiesTimely correction of strategic deviations
A sound compliance management model consists of four parts: mechanism, supervision, incentives and training, forming an integrated framework structure. On the basis of establishing an appropriate mechanism, enterprises should continuously operate and maintain the compliance management system through supervision and incentives, and at the same time improve the ability of employees to fulfill their compliance obligations through various trainings. As shown in the figure below:
When assisting a company to go public, accountants need to assess the company's internal controls and major risks. For example, the proportion of revenue from a single customer is too large, and issues such as the collection and accounting treatment of R&D expenses, share-based payment, continuing operations, related party transactions, capital flow, employee salary and welfare compliance, and intellectual property rights cannot be ignored. At the beginning of the business, the founders may not have time to take care of these risks, but when the company expands rapidly and wants to enter the capital market, many risks will become a stumbling block when the company enters the capital market.
Enterprises need to effectively control risk points in the development process and control risks within a perceptible and controllable range. On the one hand, it depends on people and management mechanisms, and on the other hand, it needs to use the power of digitalization. Process monitoring and business data analysis based on the digital system can not only discover violations of laws and regulations that may make the company's operation red, but also allow the management to intuitively control the direction of the business process, make judgments on the progress of the business based on data, discover business risks, and calibrate the strategic direction.
Make good use of AIThe corporate compliance system can also "reduce costs and increase efficiency".
AI technology has brought new possibilities to the construction of corporate compliance systems. Through the introduction of AI technology, enterprises can realize real-time monitoring of various key processes and links, carry out automatic analysis and judgment of potential compliance risks, effectively avoid risks, and improve the coverage of overall compliance supervision.
Taking the traditional bidding and procurement process as an example, due to the existence of a large number of first-class businessmen and employees, it is impossible to conduct a comprehensive pre-verification of the relevant relationships and flows during the bidding, through the introduction of generative artificial intelligence, it can effectively determine whether each bidding enterprise has an affiliated relationship or interest exchange, and conduct personnel conflict of interest verification on the enterprises and their own employees in the warehouse for procurement. At the same time, after the generative AI automatically determines the suspected affiliated enterprises, it is then manually judged whether it constitutes bid-rigging and collusion, which avoids bid-rigging and damages the interests of enterprises as much as possible and effectively reduces the procurement costs of enterprises.
Taking the company's first-class system as an example, many enterprises are facing great changes in the market environment, and the original first-class system is actually no longer feasible. A good digital system can support the whole process from business opportunity discovery, to order completion, and provide business executives with a helper who is keenly aware of market changes.
"Copying homework" style onlineIt's just an itch in the boots
There is no doubt about the necessity of digital transformation of enterprises, but the question of "how to transform" is currently facing. First, companies need to get back to the fundamental question of "why we go digital". Successful digital transformation requires a deep alignment of strategy, business, finance, and compliance.
In the process of occlusion of these four systems, many companies will fall into the misunderstanding of "copying homework". The idea of "seeing the company next door do it, so I'm going to do it too" needs to be abandoned, and if we simply move offline processes online without addressing the underlying issues of strategy, operations, finance, and compliance, then the digital effort may be the opposite. This is why the efficiency of some companies' digital systems is still not high after they are launched, because the problems existing in the original ** scenario still exist online. Even because the problem is not obvious, but it is more obvious after being online.
Depending on the stage of enterprise development, the path and method of digitalization are naturally different. At present, the digitalization of many enterprises has not yet been completed, and they are facing the tide of intelligence, so it is more necessary to maintain strategic focus and find a digital direction suitable for the development direction of the enterprise itself, rather than blindly following it.
About the Author:
Yao ChengyiMr. is currently a partner in the audit and assurance department of Deloitte Touche Tohmatsu Certified Public Accountants (Special General Partnership), providing consulting services such as enterprise comprehensive risk management, internal control and compliance, process and organizational structure reengineering, shared service center construction, and machine automation for many Fortune 500 companies. The scope of customers covers medicine and health, high-end manufacturing, finance and insurance, automobiles and parts, chemicals, telecommunications, network technology, solar energy, logistics, real estate, retail and department stores, etc.
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