|In it’s report In Meeting today’s financial challenges Ernst & Young reviews the following five key areas: |
1. Enhancing corporate governance — Improving the role of boards and audit committees in corporate governance, broader risk management activities, financial communications processes and the management of stakeholder expectations is critical to advancement in today’s economic climate.
2. Effectively managing today’s business risks — Evaluating the overall risk management infrastructure and investments necessary to look beyond financial statement risk to enterprise and external risks should not be undervalued and cannot be underscored enough.
3. Evaluating the funding and liquidity strategy — Assessing funding needs and proactively communicating with lenders, analysts and rating agencies is pivotal in an environment that demands financial flexibility.
4. Assessing the impact of regulatory and accounting rules — Determining the impact of regulatory and accounting rules, not only on the financial statements but also on the business, is a key factor in determining a response strategy.
5. Protecting financial reputation — Responding to the changing content of financial and nonfinancial reporting — including stakeholders wanting more information, transparency and certainty — could impact the financial reputation of the organization.