I am all for looking at ways to mitigate risks. The financial reports a prepared according to GAAP. The statements go through many different tests including risk. There needs to be a more formal reporting structure that includes risk mitigation as part of safeguarding assets.

1. What is Crisis
Management and
how do you best
handle Crisis
PAUL YOUNG CPA CGA
FEBRUARY 21, 2021

2. Paul Young – Customer
Success Manager / Architect –
Data, AI and Platform
Applications Specialist - BIO
• CPA, CGA (1996)
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Costing and Profitability Solutions
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
Contact information: paul.young@ca.ibm.com

3. Agenda
 What is crisis management?
 Why has the public sector been bad at crisis
management?
 What does the public and private sectors
need to do
 Sustainable Reporting
 Data and Corporate Governance
 Accounting Bodies
 Reporting and AI
 Technology
 Summary

4. What is Crisis
Management?
Source -
https://www.investopedia.co
m/terms/c/crisis-
management.asp

5. Crisis Management and Public Sector
Source - https://www.govtech.com/em/preparedness/Report-Weve-Failed-Miserably-at-Preparedness.html
• The world needs to be unified it how best to manage potential crisis.
• Private sector need to implement integrated reporting as part of preparing their financial statements
- https://www.accountingtoday.com/news/iirc-plans-major-revision-to-integrated-reporting-
framework
• Government does not do enough of auditing crisis management, i.e. pandemics geo-political events
including risk assessment and outcomes
• Source - https://www.slideshare.net/paulyoungcga/global-risk-and-how-to-implement-a-risk-
management-to-your-organization
• Government focus is too narrow
• focus in of government is very short-term, i.e. winning election and holding power -
https://www.slideshare.net/paulyoungcga/how-to-reform-the-public-sector-in-canada-and-around-
the-world

6. Crisis and Management – Top 10 –
Country conflicts and issues
Source - https://www.rescue.org/article/top-10-crises-world-should-be-watching-2021
1. Mozambique: Humanitarian needs rise rapidly as insurgency intensifies
2. Venezuela: COVID-19 compounds years-long economic crisis
3. Nigeria: Conflict and famine risk in the northeast
4. South Sudan: Recovery from civil war at risk
5. Burkina Faso: The world’s fastest-growing displacement crisis
6. Ethiopia: New conflict threatens the region
7. Democratic Republic of Congo: Unprecedented hunger crisis
8. Syria: The deadliest place for humanitarians
9. Afghanistan: Stalled peace process under threat
10.Yemen: Unrelenting conflict and risk of famine

7. Top Geopolitical Risks
Source - https://www.eurasiagroup.net/issues/top-risks-2021
1. Joe Biden Presidency
2. COVID Vaccinations
3. Climate: Net Zero meets – G-Zero
4. USA/China tensions broaden
5. Global data reckoning
6. Cyber tipping point
7. Out of (in) cold Turkey
8. Middle East: Low oil takes it toll
9. Europe after Merkel
10. Latin America disappoints

8. What does
government and
the private sector
need to do
 All government need include crisis management as part of
their risk framework
 Geo-political events should be reviewed on monthly
basis with reports being made available to public in
terms of mitigation strategies
 External and Internal auditors should be review
government’s risk framework including crisis
management as way to assess the risk impact to
public.
 Crisis Management and Risk Management should be
separated from government into specific department,
i.e. provincial, state and federal
 Local risk and crisis management reports for local
government should be reviewed by external auditors
as part the annual filings.
 All businesses need to undertake risk mitigation
policies as part of safeguarding their assets.

9. Sustainable Reporting
 Public Sector and Private Sector reporting is based on accounting standards. The reports reflect GAAP
reporting per the standards.
 More needs to be done to look at non-gaap data including how to mitigate geo-political events
 Here is my work on sustainable reporting. There appears to be global movement by various accounting
standards board to bring a standardized framework for sustainable reporting -
https://ibm.box.com/s/vmyitcackqevvm1hcxv7wke6gudrpnce

10. Governance and Data Protection

11. Accounting
Bodies
 FASB / Loans - https://www.risk.net/risk-
management/7507111/cecl-working-as-
intended-amid-covid-19-crisis-says-fasb
 IFRS Control Group/Crisis -
https://www.ifrs.org/groups/financial-crisis-
advisory-group/
 CPA Canada -
https://www.cpacanada.ca/en/business-
and-accounting-resources/strategy-risk-
and-governance/enterprise-risk-
management?page=5

12. Technology
 RPA / Crisis Management -
https://www.automationanywhere.com/company/blog/rpa
-thought-leadership/protecting-your-business-from-the-
next-crisis or
https://www.idginsiderpro.com/article/3543836/how-rpa-
helps-organizations-deal-with-a-global-crisis.html
 AI and Crisis Management -
https://www.neosperience.com/blog/crisis-management-
how-the-ai-can-take-part-on-it-successfully/
 IBM / Crisis Management -
https://www.ibm.com/industries/government/public-
safety/intelligent-operations-center-emergency-
management
 Reporting Solutions – AI and Corporate Reporting -
https://www2.slideshare.net/paulyoungcga/artificial-
intelligence-ai-with-office-of-the-cfo
 Risk Management / Analytics -
https://www2.slideshare.net/paulyoungcga/understanding-
risks-as-part-of-development-risk-management-best-
practices

13. Summary
 All business and government need to implement the COSO risk
framework including crisis management policies and
procedures.
 World leaders need to become proactive not reactive to events.
 Scenario Planning should be added to the close, consolidate,
and reporting cycle - https://www.ibm.com/blogs/business-
analytics/scenario-modeling-key-readiness-2018/
 Improving Cash Flow -
https://www.youtube.com/watch?v=u4nAKxEqS9w&t=112s
 Crisis Management ChatBot -
https://www.youtube.com/watch?v=2bDFYYMqv_g
 OpenPages and Watson -
https://www.youtube.com/watch?v=2HsCeyPQJQ8&t=151s
 Supply chain management -
https://www.youtube.com/watch?v=yiD2YmL8sKs&t=41s