Here is my look at compliance and risk

1. Strengthen Internal Controls
and Compliance through Data
and AI as part of the Regulatory
and Corporate Reporting Cycle
Paul Young CPA CGA
Pre-Sales Consultant
April 18, 2023

2. Paul Young - Bio
• CPA, CGA (1996)
• Academia (PF1, FA4, FN2, MU1. and
MS2)
• SME – Customer Success Management
• SME – Risk Management
• SME – Sustainability and ESG Reporting
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: paul.young_cga@actionkpi.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/

3. Agenda
• What is Risk and Compliance?
• Types of Compliance Risk
• Internal Control Framework
• Top Regulatory Challenges
• Regulatory Environment Diagram
• Example of Corporate Governance Structure
• Example of Regulatory Framework
• CFO / Operational areas
• CFO / Data, Operational Efficiency, and Workforce Planning
• Moving forward with a Data and AI strategy
• Close, Consolidate, and Reporting
• Sustainability and ESG Reporting
• Key Sources
• Summary

4. Cost of Regulatory Filings
4

5. What has Changed with
Regulatory Filings
5
1990s
– Introduction of SOX
– Organizations setting up VPNs and
websites as part of managing their
operations
– Email adoption became more
widespread
Present Day
– More cybersecurity threats
– Move to net zero (ESG and Sustainability
Reporting)
– More dlsclosure demanded by SEC
(Wages, Climate Change Risk)
– Hybrid work model
– Cloud first strategy / System of Record
– Data lying in data siloes / Privacy rules
– Trusted AI / Security and Privacy
– Chatbots / (Protecting and Securing Data)

6. What is Risk and Compliance
6

7. Types of Compliance Risk
7

8. Internal Control Framework
8

9. Using Data and AI as part improving both internal controls
and compliance
9

10. Top Regulatory Challenges for 2023
10
1. Scrutiny and Divergence
2. Climate and Sustainability
3. Transparency and Reporting
4. Data and Cybersecurity
5. Technology and Resiliency
6. Credit and Capital
7. Fairness and Inclusion
8. Fraud and Financial Crime
9. Payment and Crypto
10. Risk and Governance

11. Regulatory Environment Diagram
11
– Enterprise (Public and Private
– Accounting Standards
(FASB and IFRS)
– SEC Filings
– Government
Regulations
& Taxes
– Industry
Standards and
Rules
Regulatory Bodies
Output
1. Audited Financial
Statements
2. Shareholder value
3. Social, Environment, and
Governance
4. Driving better business
outcomes
5. Supporting internal and
external clients
6. Strengthening Internal
Controls
7. Mitigating threats and
risks factors

12. Example of Corporate
Governance Structure
12

13. Top Challenges facing Office of Finance – Operational
13

14. Top 3 Challenges for CFO
14
– Digital Transformation
– Workforce Priorities
In 2023, employers will need to continue to listen to and partner with their
workers to understand their needs. According to the Gallup Organization’s State
of the Global Workplace Report, just 21% of employees were engaged at work
in 2022
And according to another report, the emerging technologies most likely to be
important to small businesses over the next decade include cybersecurity
(57%), 5G (50%), automation (39%), artificial intelligence (AI) (34%),
cryptocurrency (26%), virtual/augmented reality (25%), the metaverse (20%)
and non-fungible tokens (NFTs) (16%).
– Boost Resilience
Companies are preparing for a realm of disruptions by increasing resilience
across operations. Chief among the steps companies can take is freeing up
cash. With interest rates and inflation expected to continue to rise,
strengthening working capital becomes imperative. Focus on ways to reduce
costs while also identifying new revenue streams to mitigate risk. Automate
tasks where possible to improve operational efficiency.

15. How to drive Data and AI
15
– Build data and AI solution through trusted
AI
– Breaking down data silos
– Integrating business analytics tools with
various lines of businesses
– Ensure compliance through data
governance, data protection, and data
security
– Looking at the best ways to leverage
business analytics through data
management and data ingestion
– Continue to invest in solutions that
mitigate the threats of cybersecurity
attacks
– Continue to move forward with more
automation as improving overall
operational efficiency

16. How to streamline the close, consolidate, and reporting
cycle and the role of Data and AI
16
1. Define and assign tasks (Month-end, Quarterly, and yearly schedules)
2. Reconcile accounts more frequently
3. Look at ways to automate tasks through better management of data sources (System of Record)
4. Simplify the chart of accounts
5. Improve access to information through better data management and ingestion
6. Automate the consolidation process

17. ESG and Sustainability
Reporting
17
Blog - Breaking Down the Basics - ESG Reporting
Standards Vs. Frameworks -
https://www.linkedin.com/posts/paul-young-
055632b_breaking-down-the-basics-esg-reporting-
standards-activity-7048294957631115265-
o3Yn?utm_source=share&utm_medium=member_de
sktop
https://seekingalpha.com/article/4591490-breaking-
down-basics-esg-reporting-standards-vs-frameworks

18. ESG / Sustainability
Add a footer 18

19. Key links
ESG - https://www.ibm.com/products/envizi
Planning Analytics - https://ibm.box.com/s/oo8zp0iqcycn5sn5di9l8nk7j3iuxujc
Cognos Analytics - https://ibm.box.com/s/phj8jboct9qzmh2nyg8vn4gx77dpp93k
IBM OpenPages -
https://www.ibm.com/common/ssi/ShowDoc.wss?docURL=/common/ssi/rep_ca/9/899/ENUSLP22-
0109/index.html
Scope 1, Scope 2, and Scope 3 for Sustainability Reporting - Envisi/Maximo –
https://www.ibm.com/products/envizi/scope-1-2-ghg-accounting-reporting or
https://www.ibm.com/products/envizi/scope-3-ghg-accounting-reporting
Maximo / ESG - https://www.ibm.com/blogs/southeast-europe/turning-sustainability-ambition-into-
action-across-central-and-eastern-europe/

20. Any additional questions and/or concerns, then reached
out to paul_young_cga@actionkpi.com