Applying	
  an	
  
Effec.ve	
  Control	
  
Environment	
  to	
  
Integrated	
  
Repor.ng	
  Through	
  
COSO	
  
Liv	
  Wat...
Brad Monterio
Managing Director
‘‘
Brad	
  Monterio	
  
Managing	
  Director,	
  Colcomgroup,	
  Inc.	
  
and	
  Board	
  ...
SETTING	
  CONTEXT	
  
§  Overview	
  of	
  Integrated	
  
Repor.ng	
  <IR>	
  Framework	
  
§  Overview	
  of	
  Integr...
SETTING	
  CONTEXT	
  
AN	
  OVERVIEW	
  OF	
  THE	
  NEW	
  INTEGRATED	
  
REPORTING	
  FRAMEWORK	
  AND	
  THE	
  UPDATE...
www.TheIIRC.org	
  
FINANCIAL	
  
REPORTING	
  
CSR	
  
REPORTING	
  
SUSTAINABILITY	
  
REPORTING	
  
 <IR>	
  is	
  a	
  process	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
	
  founded	
 ...
INTEGRATED	
  THINKING	
  
DRIVES	
  <IR>	
  
§ Improve	
  quality	
  of	
  informa.on	
  	
  
§ Promote	
  more	
  cohesive/efficient	
  
approach	
  to	
  corporate	
...
VALUE	
  CREATION:	
  
A	
  CENTRAL	
  THEME	
  
§ Be#er	
  repor.ng,	
  not	
  more	
  
§  Emphasizes	
  importance	
  of	
  
integrated	
  thinking	
  
§ Consistent	
...
FINANCIAL	
  INFORMATION	
   NON	
  FINANCIAL	
  INFORMATION	
  
§  Long	
  history	
  in	
  corporate	
  repor.ng	
  
§...
HISTORY	
  OF	
  
FRAMEWORKS	
  
1992	
  COSO	
  
2004	
  
ERM	
  
2006	
  
Small	
  
COSO	
  
2013	
  
COSO	
  
COSO	
  Overview	
  	
  
Source:	
  www.coso.org/governance.htm	
  
COSO:	
  5	
  COMPONENTS,	
  17	
  PRINCIPLES	
  
Source:	
  www.coso.org/governance.htm	
  
§  XXXXX	
  
§  XXXXX	
  
§  XXXXX	
  
§  XXXXX	
  
2013	
  UPDATE	
  TEMPLATES	
  
Source:	
  www.coso.org/governance...
A	
  NEW	
  PARADIGM	
  
THE	
  INTERSECTION	
  OF	
  <IR>	
  AND	
  COSO	
  –	
  
MANAGING	
  AND	
  BALANCING	
  THE	
  ...
COSO	
  in	
  the	
  
view	
  of	
  <IR>	
  .	
  
<IR>	
  brings	
  together	
  material	
  
informaDon	
  about	
  an	
  ...
We	
  NEED	
  YOUR	
  FEEDBACK	
  
Org	
  Overview	
  
Governance	
  
Business	
  
Model	
  
Risks	
  &	
  
Opportuni.es	
  
Strategy	
  &	
  
Resources	
  
...
Org	
  Overview	
  
Governance	
  
Business	
  
Model	
  
Risks	
  &	
  
Opportuni.es	
  
Strategy	
  &	
  
Resources	
  
...
Org	
  Overview	
  
Governance	
  
Business	
  
Modell	
  
Risks	
  &	
  
OpportuniOes	
  
Strategy	
  &	
  
Resources	
  ...
Org	
  Overview	
  
Governance	
  
Business	
  
Modell	
  
Risks	
  &	
  
OpportuniOes	
  
Strategy	
  &	
  
Resources	
  ...
Org	
  Overview	
  
Governance	
  
Business	
  
Modell	
  
Risks	
  &	
  
OpportuniOes	
  
Strategy	
  &	
  
Resources	
  ...
Org	
  Overview	
  
Governance	
  
Business	
  
Modell	
  
Risks	
  &	
  
OpportuniOes	
  
Strategy	
  &	
  
Resources	
  ...
FINANCIAL	
  
STANDARDS:	
  	
  	
  	
  
US	
  GAAP,	
  IFRS	
  
NON	
  FINANCIAL	
  
FRAMEWORKS:	
  
SASB,	
  CDP,	
  GRI...
Strategic	
  
Risks	
  
OperaOonal	
  
Risks	
  
Compliance	
  
Risks	
  
ReporOng	
  
Risks	
   ERM	
  
ROLE	
  OF	
  
TECHNOLOGY	
  
ROLE	
  OF	
  EMERGING	
  
TECHNOLOGIES	
  
ROLE	
  OF	
  EMERGING	
  
TECHNOLOGIES	
  
ROLE	
  OF	
  EMERGING	
  
TECHNOLOGIES	
  
CLOUD	
  
ROLE	
  OF	
  EMERGING	
  
TECHNOLOGIES	
  
ROLE	
  OF	
  EMERGING	
  
TECHNOLOGIES	
  
ROLE	
  OF	
  EMERGING	
  
TECHNOLOGIES	
  
ROLE	
  OF	
  EMERGING	
  
TECHNOLOGIES	
  
ADVANCED	
  
ANALYTICS	
  
ROLE	
  OF	
  EMERGING	
  
TECHNOLOGIES	
  
EXPERT	
  
SYSTEMS	
  
ROLE	
  OF	
  EMERGING	
  
TECHNOLOGIES	
  
Applying an Effective Control Environment to Integrated Reporting Through COSO_Final ima ir coso deck  liv brad for 25 jun14
Applying an Effective Control Environment to Integrated Reporting Through COSO_Final ima ir coso deck  liv brad for 25 jun14
Applying an Effective Control Environment to Integrated Reporting Through COSO_Final ima ir coso deck  liv brad for 25 jun14
Applying an Effective Control Environment to Integrated Reporting Through COSO_Final ima ir coso deck  liv brad for 25 jun14
Applying an Effective Control Environment to Integrated Reporting Through COSO_Final ima ir coso deck  liv brad for 25 jun14
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Applying an Effective Control Environment to Integrated Reporting Through COSO_Final ima ir coso deck liv brad for 25 jun14

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Applying an Effective Control Environment to Integrated Reporting Through COSO!

By Liv Watson and Brad Monterio

Wdesk and ColcomGroup

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Applying an Effective Control Environment to Integrated Reporting Through COSO_Final ima ir coso deck liv brad for 25 jun14

  1. 1. Applying  an   Effec.ve  Control   Environment  to   Integrated   Repor.ng  Through   COSO   Liv  Watson,  Director  of  New   Markets,  WebFilings   Brad  Monterio,  Managing   Director,  Colcomgroup  
  2. 2. Brad Monterio Managing Director ‘‘ Brad  Monterio   Managing  Director,  Colcomgroup,  Inc.   and  Board  Member,  Ins.tute  of   Management  Accountants   bmonterio@colcomgroup.com   Liv  Watson   Director,  Interna.onal  Business   Development,  WebFilings  and                                               Founder  of  XBRL   liv.watson@webfilings.com  
  3. 3. SETTING  CONTEXT   §  Overview  of  Integrated   Repor.ng  <IR>  Framework   §  Overview  of  Integrated   COSO  Frameworks   A  NEW  PARADIGM   §  The  Intersec.on  of  <IR>   and  COSO   ROLE  OF  TECHNOLOGY   §  Intersec.on  of  <IR>  ,  COSO   and  Technology   Q&  A     AGENDA   ©2014  Liv  Watson  and  Brad  Monterio  
  4. 4. SETTING  CONTEXT   AN  OVERVIEW  OF  THE  NEW  INTEGRATED   REPORTING  FRAMEWORK  AND  THE  UPDATED   COSO  FRAMEWORK  
  5. 5. www.TheIIRC.org  
  6. 6. FINANCIAL   REPORTING   CSR   REPORTING   SUSTAINABILITY   REPORTING  
  7. 7.  <IR>  is  a  process                                          founded  on  integrated  thinking     that  results  in  a  periodic  integrated     report  by  an  organiza.on  about  value  crea.on   over  .me  and  related  communica.ons   regarding  aspects  of  value  crea.on.     An  integrated  report  is  a  concise   communica.on  about  how  an  organiza.on’s   strategy,  governance,  performance  and   prospects,  in  the  context  of  its  external   environment,  lead  to  the  crea.on  of  value     in  the  short,  medium  and  long  term.  
  8. 8. INTEGRATED  THINKING   DRIVES  <IR>  
  9. 9. § Improve  quality  of  informa.on     § Promote  more  cohesive/efficient   approach  to  corporate  repor.ng     § Communicate  full  range  of  factors   that  materially  affect  ability  to   create  value   § Enhance  accountability  and   stewardship   § Promote  interdependencies   § Support  integrated  thinking,   decision-­‐making  to  create  value   over  the  short,  medium  and  long   term   GOALS  OF  <IR>  
  10. 10. VALUE  CREATION:   A  CENTRAL  THEME  
  11. 11. § Be#er  repor.ng,  not  more   §  Emphasizes  importance  of   integrated  thinking   § Consistent  with  corporate   repor.ng  developments     § Basis  for  greater  innova.on     § Combines  emphasis  on:   •  Conciseness  and  materiality   •  Strategic  focus  and  future   orienta.on   •  Connec.vity   •  Capitals  and  their   interdependencies   <IR>  IN  A  NUTSHELL  
  12. 12. FINANCIAL  INFORMATION   NON  FINANCIAL  INFORMATION   §  Long  history  in  corporate  repor.ng   §  Established,  uniform  repor.ng   standards   §  Established  oversight  bodies   §  Established  quality  control   §  Established  internal  controls   §  Well  understood  systems  and   processes  –  highly  automated   §  Heavily  structured   §  Solid,  broad  market  acceptance  and   credibility  -­‐  trusted   §  Short  history  in  corporate  repor.ng   §  Lack  of  uniform  repor.ng  standards   §  Lack  of  clear  oversight  responsibility  –   patchwork  of  compe.ng  frameworks   §  Lack  of  strong  quality  control   §  Internal  controls  not  well  understood   §  Mix  of  systems  an  processes  to   gather/store  informa.on  –  not  highly   automated;  many  manual  processes   §  Ocen  unstructured   §  Narrow  market  acceptance  –  not  well   trusted   LOWER  RISK   HIGHER  RISK  
  13. 13. HISTORY  OF   FRAMEWORKS   1992  COSO   2004   ERM   2006   Small   COSO   2013   COSO  
  14. 14. COSO  Overview     Source:  www.coso.org/governance.htm  
  15. 15. COSO:  5  COMPONENTS,  17  PRINCIPLES   Source:  www.coso.org/governance.htm  
  16. 16. §  XXXXX   §  XXXXX   §  XXXXX   §  XXXXX   2013  UPDATE  TEMPLATES   Source:  www.coso.org/governance.htm  
  17. 17. A  NEW  PARADIGM   THE  INTERSECTION  OF  <IR>  AND  COSO  –   MANAGING  AND  BALANCING  THE  RISKS  
  18. 18. COSO  in  the   view  of  <IR>  .   <IR>  brings  together  material   informaDon  about  an  organizaOon’s   strategy,  governance,  performance   and  prospects  in  a  way  that  reflects   the  commercial,  social  and   environmental  context  within  which  it   operates  (a  “concise…  periodic   communicaOon”).     COSO  brings  together  internal   controls  and  enterprise  risk   management  frameworks  for   material  informaDon.      
  19. 19. We  NEED  YOUR  FEEDBACK  
  20. 20. Org  Overview   Governance   Business   Model   Risks  &   Opportuni.es   Strategy  &   Resources   Performance   Outlook   Basis  of   Prepara.on   Strategic   Focus  &   Future   OrientaOon   Connec.vity   Stakeholders   Materiality   Conciseness   Reliability  &   Completeness   Consistency  &   Comparability   Control   Environment   Risk   Assessment   Control   Ac.vi.es   Informa.on   &  Communic.   Monitoring   Ac.vi.es   ©2014  Liv  Watson  and  Brad  Monterio   <IR>   THROUGH   THE  LENS   OF  COSO  
  21. 21. Org  Overview   Governance   Business   Model   Risks  &   Opportuni.es   Strategy  &   Resources   Performance   Outlook   Basis  of   Prepara.on   Strategic   Focus  &   Future   OrientaOon   Connec.vity   Stakeholders   Materiality   Conciseness   Reliability  &   Completeness   Consistency  &   Comparability   Control   Environment   Risk   Assessment   Control   Ac.vi.es   Informa.on   &  Communic.   Monitoring   Ac.vi.es   ©2014  Liv  Watson  and  Brad  Monterio   <IR>   THROUGH   THE  LENS   OF  COSO  
  22. 22. Org  Overview   Governance   Business   Modell   Risks  &   OpportuniOes   Strategy  &   Resources   Performance   Outlook   Basis  of   PreparaOon   Strategic   Focus  &   Future   OrientaOon   ConnecOvity   Stakeholders   Materiality   Conciseness   Reliability  &   Completeness   Consistency  &   Comparability   Control   Environment   Risk   Assessment   Control   AcOviOes   InformaOon  &   Communic.   Monitoring   AcOviOes   ©2014  Liv  Watson  and  Brad  Monterio   <IR>   THROUGH   THE  LENS   OF  COSO  
  23. 23. Org  Overview   Governance   Business   Modell   Risks  &   OpportuniOes   Strategy  &   Resources   Performance   Outlook   Basis  of   PreparaOon   Strategic   Focus  &   Future   OrientaOon   ConnecOvity   Stakeholders   Materiality   Conciseness   Reliability  &   Completeness   Consistency  &   Comparability   Control   Environment   Risk   Assessment   Control   Ac.vi.es   Informa.on  &   Communica.on   Monitoring   Ac.vi.es   ©2014  Liv  Watson  and  Brad  Monterio   <IR>   THROUGH   THE  LENS   OF  COSO  
  24. 24. Org  Overview   Governance   Business   Modell   Risks  &   OpportuniOes   Strategy  &   Resources   Performance   Outlook   Basis  of   PreparaOon   Strategic   Focus  &   Future   OrientaOon   ConnecOvity   Stakeholders   Materiality   Conciseness   Reliability  &   Completeness   Consistency  &   Comparability   Control   Environment   Risk   Assessment   Control   Ac.vi.es   Informa.on  &   Communica.on   Monitoring   Ac.vi.es   ©2014  Liv  Watson  and  Brad  Monterio   <IR>   THROUGH   THE  LENS   OF  COSO  
  25. 25. Org  Overview   Governance   Business   Modell   Risks  &   OpportuniOes   Strategy  &   Resources   Performance   Outlook   Basis  of   PreparaOon   Strategic   Focus  &   Future   Orienta.on   ConnecOvity   Stakeholders   Materiality   Conciseness   Reliability  &   Completeness   Consistency  &   Comparability   Control   Environment   Risk   Assessment   Control   Ac.vi.es   Informa.on  &   Communica.on   Monitoring   Ac.vi.es   ©2014  Liv  Watson  and  Brad  Monterio   <IR>   THROUGH   THE  LENS   OF  COSO  
  26. 26. FINANCIAL   STANDARDS:         US  GAAP,  IFRS   NON  FINANCIAL   FRAMEWORKS:   SASB,  CDP,  GRI   ©2014  Liv  Watson  and  Brad  Monterio  
  27. 27. Strategic   Risks   OperaOonal   Risks   Compliance   Risks   ReporOng   Risks   ERM  
  28. 28. ROLE  OF   TECHNOLOGY  
  29. 29. ROLE  OF  EMERGING   TECHNOLOGIES  
  30. 30. ROLE  OF  EMERGING   TECHNOLOGIES  
  31. 31. ROLE  OF  EMERGING   TECHNOLOGIES   CLOUD  
  32. 32. ROLE  OF  EMERGING   TECHNOLOGIES  
  33. 33. ROLE  OF  EMERGING   TECHNOLOGIES  
  34. 34. ROLE  OF  EMERGING   TECHNOLOGIES  
  35. 35. ROLE  OF  EMERGING   TECHNOLOGIES   ADVANCED   ANALYTICS  
  36. 36. ROLE  OF  EMERGING   TECHNOLOGIES   EXPERT   SYSTEMS  
  37. 37. ROLE  OF  EMERGING   TECHNOLOGIES  
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