staying on-top in a dynamic regulatory environment - KPMG

1 downloads 218 Views 728KB Size Report
DO YOU KNOW THAT REGULATORY RISK IS ONE OF TOP TEN ... company over non-compliance with best ... “The Nigerian Stock E
STAYING ON-TOP IN A DYNAMIC REGULATORY ENVIRONMENT DO YOU KNOW THAT REGULATORY RISK IS ONE OF TOP TEN BUSINESS RISKS IN NIGERIA TODAY? “The National Agency for Food and Drug Administration and Control (NAFDAC) imposed heavy penalties on a manufacturing company over non-compliance with best manufacturing practices” www.vanguardngr.com, 2015 “The Nigerian Stock Exchange (NSE) has suspended 17 listed companies from trading their shares over failure to submit some relevant documents.” www.punchng.com, 2017. “…Nigeria’s telecom regulatory authority, NCC, imposed a fine of N1.17 billion ($7.3 million) on the four operators in the country for poor quality of services” www.venturesafrica.com, 2017.

The demand for regulatory compliance is rapidly increasing and so are the risks associated with failing to meet these demands. The key to optimal and efficient regulatory compliance is to develop and implement an automated regulatory risk management framework.

of respondents believe that increased pressure from regulators have increased the risks faced by organisations.

Macro-economic risk Crude oil price risk Political risk

Risk Drivers over the last 2 to 3 Years

Energy risk 50

Capital availability risk Regulatory risk Competition risk Supply chain risk Business continuity risk

Number of Companies

Security risk

49

Recession

44

Unstable geopolitics

40 30 20 10 0

Regulatory pressure

24

Corporate restructuring

14

12 11

Reputational events

4

International operations Higher investor demands

Source: KPMG Nigeria Survey on Top 10 Business Risks in 2016 1

STAYING ON-TOP IN A DYNAMIC REGULATORY ENVIRONMENT (CONT’D) OUR VALUE-ADDED SOLUTION OUR VALUE-ADDED SOLUTION KPMG’s holistic regulatory compliance solution leverages technology to provide Management and the Board with the required oversight to proactively monitor compliance with all regulatory obligations and minimise the risk of corporate exposure to non-compliance. Our solution proves to be very effective in streamlining the organisational efforts required to optimise regulatory compliance. It also supports lean resourcing of the compliance function through seamless monitoring and reporting of compliance irrespective of geographical business locations.

Common Challenges Ineffective internal control mechanisms to monitor regulatory compliance and track regular updates

How KPMG will Help Establish a Regulatory Governance Compliance Framework

Identify and assess relevant regulatory guidelines applicable to the organisation Incomplete repository of regulations impacting an organisation

Inefficient compliance monitoring structures and processes including undefined responsibilities

Develop a Compliance Rule Book comprising a comprehensive repository of all regulations impacting your organisation Automate the compliance process for proactive monitoring and timely escalation where required Automate compliance monitoring and dashboard reporting to management and Board

Absence of a reliable means of ensuring and reporting on compliance status to Management and the Board

Perform an independent Regulatory Assurance Review to ascertain if your regulatory risks are being managed effectively

Benefits

1

Improved understanding of the impact of key regulatory risks on the organisation

2

Prioritised focus on compliance requirements that are critical to the business

3

Reliable assurance on regulatory compliance activities within the organisation

4

Strengthened risk and compliance culture

5

Increased accountability for regulatory compliance

6

Implementation of lean and efficient compliance monitoring models

Irrespective of the maturity of your organistional compliance process, we can work with you to attain your desired state 2

STAYING ON-TOP IN A DYNAMIC REGULATORY ENVIRONMENT (CONT’D) OUR VALUE-ADDED SOLUTION OUR WEB-BASED REGULATORY COMPLIANCE TOOL: CAPABILITIES AND FEATURES

User-friendly Easy to understand and use. Adaptable across levels within the organisations

Regulatory database The repository of regulatory requirements specific to your business.

Auto-notifications Automated updates, reminders and escalation mails to relevant stakeholders.

Security access User profiling and access to portal through assigned usernames and password details.

KPMG’s Web-based tool

Compliance monitoring Automated monitoring of noncompliance

Executive dashboard reporting Key compliance reports, compliance risk map, compliance statistics and analysis.

WHY KPMG?

1

Automated Regulatory Compliance Monitoring Capabilities

3

Experienced and Coordinated Team

2

Refined Leading Practices

4

Exceptional Credentials

Tomi Adepoju Partner, Risk Consulting KPMG Advisory Services +234 803 402 0952 [email protected]

Gloria Ojo Senior Manager, Risk Consulting KPMG Advisory Services +234 703 406 7936 [email protected]

Seun Olaniyan Manager, Risk Consulting KPMG Advisory Services +234 812 831 8821 [email protected]

Oluwabusayo Bamigbola Assistant Manager, Risk Consulting KPMG Advisory Services +234 809 454 1660 [email protected]

kpmg.com/socialmedia © 2017 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Nigeria.

3