Future of Controls

Creating a bold and positive vision

Controls can be challenging for organizations that struggle to get even the basics right. However, the role that the risk and controls community has played during the pandemic gives us hope. Today, we see clear trends and individual cases of creativity and innovation that help us to imagine a bold and positive future for internal controls.

In our paper, we demonstrate how a robust risk and controls environment can help organizations become more agile and resilient, and support accelerated digital transformation—all of which help companies better utilize automation in operating and monitoring their controls. We offer a clear vision that is aligned to a wider business strategy and links to the underlying business purpose and goals to assist organizations in embedding a robust controls environment, and help them thrive in this volatile and complex business environment.

Reimagining the Future of Controls

Our paper describes three key levers that help drive the internal controls journey: 

1. Reconstructing the internal controls framework - building a true data-driven agile framework that mitigates known risks, anticipates and apprises the organization to emerging risks, delivers value, and drives focus
   
2. Designing the next generation controls operating model - reimagining the key principles of the operating model and the enablers that can help change mindsets, develop capabilities, and assist businesses to embrace, operate, and embed controls as part of the organization’s DNA
   
3. Establishing the controls technology ecosystem - leveraging the digital transformation and utilizing controls automation to help alleviate some of the pressure on the internal controls functions in cost reduction, efficiency drive, and effective management of risks and opportunities. And at the same time building confidence, intelligence, and performance—three key elements of a successful FoC journey
   

We explore these levers in detail and provide examples from global organizations that demonstrate the trends and successful business engagements that help achieve the Future of Controls vision.

A typical journey

The Future of Controls journey may vary from organization to organization based on the maturity of the controls environment, the level of regulatory compliance pressure they endure, and the specific industry trends they need to manage. However, irrespective of the level of maturity and transformation, the vision, mission, goals, and key levers we discuss can help organizations customize a controls road map that fits their specific business goals. To that extent, we have outlined a typical six-step road map for a successful FoC journey.

We are in a period of unprecedented uncertainty with the confluence of technology revolution, global pandemic, merger and acquisitions and private equity funded disrupters. Organizations should not passively search for answers—they should take action now or they may face a chasm so wide and deep, between their pace of customer-facing innovation and their controls programs, that legacy programs may stifle growth and prevent them from realizing their prospects. The time to act is now.

To further explore the key themes and trends, and for more information about how Deloitte can help you succeed with your Future of Controls journey, please connect with us.