Risk and Controls Centre of Excellence
Next-gen internal controls and compliance organisation
The current global environment is characterised by change, uncertainty, and disruptive innovation. These changes are fundamentally transforming organisations and affecting the world of Internal Controls (ICs). Given the cost pressure, increased scrutiny from regulators, and an unpredictable business environment, organisations are considering a Risk and Controls Centre of Excellence (RCCoE) to centralise and support risk management activities while optimising cost.
What is a Risk and Controls Centre of Excellence (RCCoE)?
Risk and Controls Center of Excellence is a next-gen centralised IC and compliance organisation that helps evolve from a traditional risk management approach (which was manual and reactive) to a more advanced set-up (which is automated, predictive, and near real time). It is established with an objective to support regulatory and operational compliance activities across both the process and IT domains.
Key considerations while setting up a RCCoE
- Process and controls
- Business case
- Change management
- ERP environment
- Business acceptance
- Global capability centers
- Migration approach
- Awareness and ownership of ICs
Key benefits of an RCCoE:
- Enhances control environment, ownership, and oversight
- Efficient resource utilisation
- Optimise cost
While the finance and accounting functions, and IT organisations have been using a centralised operating model over the years, IC organisations are now more actively adopting this set-up. The approach to set-up a RCCoE will include a assess, design, implement, run, and operate phase. A well-designed and focused RCCoE addresses a widerisk universe and provides a holistic view of the global controls posture. It improves governance while optimizing cost and resources. It transforms risk management practices and internal controls organisations thereby driving impact.