@Risk

Companies are struggling to comply with increased regulations and the growing complexities of financial reporting and tax rules.

In fact, a recent survey by Ernst & Young found that nearly two-thirds of financial executives feel changing regulations will challenge their compliance and reporting processes.

Remarkably, 64 percent of the Fortune Global 500 participating in this study said their companies experienced unplanned tax audits within the past year, with almost half receiving unexpected tax assessments or penalties.

The survey results, summarized in the report Seizing the opportunity in Global Compliance and Reporting, identified key areas where companies can improve global compliance and reporting (GCR). For instance:

• (more…)

The third annual Ernst & Young Business Risk Report is out, and this year, the survey reveals the most important business risks varied dramatically across sectors, regions and companies.

For example, executives ranked regulation and compliance as the top business risk across the majority of sectors, undoubtedly related to the aftermath of the global financial crisis and prompted by a general uncertainty in the market place driven by regulatory reform. However, limited access to credit and the threat of continuing weak economic performance in certain regions of the world remain high on the list of potential concerns, ranking second and third, respectively. And, the fastest growing risk seen by survey participants is their companies’ abilities to succeed in emerging markets, a factor that is cited as a strategic imperative for global growth.

In addition to reflecting back over the past year, the report looks forward, hoping to predict business risks that will have a strong presence in the near future. According to the report, these risks include: (more…)

Mirroring the optimism the Corporate Executive Board found in a survey of business executives earlier this year, a new study by Ernst & Young LLP has found that most senior executives now have a positive attitude and expect economic recovery and increased profitability over the next 12 months.

According to the Ernst & Young Growth Company Leadership survey, which polled 349 senior level executives at US public and private firms in April 2010, business leaders are particularly optimistic about revenue, profitability, technology spending and hiring. For example: (more…)

Can you think of ways to improve risk management at your company?

According to new research by Ernst & Young, the vast majority of C-suite execs would answer that question with a resounding “Yes.”

In fact, 96% of participants in Ernst & Young’s new survey said that their risk management programs could be improved. Nearly half (46%) believe that committing more resources to risk management would help create a competitive advantage. And, only 1% said that they intend to reduce risk management resources next year.
(more…)

If you’re looking for an up-to-date snapshot of how companies around the world are coping with today’s economic stresses, you need to check out Ernst & Young’s latest research report, “Opportunities in Adversity –Accelerating the change.”

This report summarizes data collected just last month,  in June 2009, from 569 C-suite and board-level executives, representing a variety of different countries and sectors. It also provides comparison with findings from an earlier survey, “Opportunities in Adversity,” which Ernst & Young conducted in January 2009, when the global downturn appeared most precipitous. While evidence suggests that the economy has stabilized appreciably since then, there’s no doubt that significant questions remain. What are the indications that we headed toward an upturn? If we are moving in that direction, how long will the recovery take? And, perhaps most importantly, what can you do to not only improve the performance of your company, but also position it to align with the emerging market environment? Are there opportunities you need to exploit now?

(more…)