The costs relating to any digital risk can be material, and most organizations do not calculate the risk of such exposure. It is the job of the CFO to ensure that the business appropriately reflects those risks in the 10-Q and 10-K filings.
CFOs see risks around every corner. If they work for a public company, they have to: the Securities and Exchange Commission requires publicly traded companies to submit a quarterly 10-Q and yearly 10-K report detailing all aspects of the organization’s financial status.
So why then, do CFOs not calculate the actual risk associated with the use of digital by the organization? This in potentially a grave exposure for the business and one that should not be overlooked.
I just published my thinking about this issue in CFOs: Do Your 10-Q and 10-K Properly Address Digital Risks? and hope this information provides you with the foundation you need to effectively assess and manage your organization’s digital risks, whether you include the information in your 10-Q/10-K or use it to strengthen your overall approach to managing your financial health. I encourage you to start these conversations with your colleagues so that you’ll be ready to handle the challenges and opportunities technology will undoubtedly bring over the coming years.
If you run into problems identifying, measuring or managing risks that come with the organization’s use of digital and need ideas on getting to the answers, feel free to get in touch.