ClusterSeven delivers spreadsheet risk management solutions to organizations looking to enhance their enterprise risk management, whether it is to further develop the management of the business, address critical audit issues, or streamline their regulatory compliance processes.
Spreadsheet risk comes from the uncontrolled use of spreadsheets in key business processes and reports. Despite extensive investment in corporate IT systems, spreadsheets remain a core part of many business-critical processes.
Spreadsheets provide huge power and flexibility to users, but from an audit perspective, their widespread use opens up a host of issues, due to their lack of controls and the absence of data governance and transparency. This can mean that the data used in critical business processes, and the reports that management and auditors rely on may not be an accurate picture of the reality of the business. This gives rise to the chance of sub-optimal management decision at best, and the creation of flawed shareholder reports, and the restating of earnings at worst.
What Causes Spreadsheet Risk?
Spreadsheet risk is more likely to occur if there:
- Is little understanding of what spreadsheets are used throughout the business and which are the most important.
- Is little understanding of the business impact of failures in these most significant spreadsheets.
- Is a lack of clear ownership of spreadsheets across the business.
- Is a lack for a process around how changes are made to spreadsheets, whether data of function.
- Are Spreadsheets of such complexity, that it can be difficult to define the risks these spreadsheets present to the business.
Why does it matter?
The issue of spreadsheet risk is moving up the corporate agenda, in part due to the enhanced scrutiny of auditors – internal and external – who increasingly recognize the significance, the value, and also the risks of spreadsheets used in key business processes. The uncontrolled use of spreadsheets can expose businesses to project risk, customer service delivery issues, product or service quality issues, contract risk, resource risk, revenue recognition issues, and much else besides. Spreadsheet risk gives rise to potential reputational, commercial or regulatory harm. In extreme cases, spreadsheet risk can create an existential threat to the business.
The Solution: Automated Spreadsheet Risk Management
ClusterSeven offers automated spreadsheet risk management solutions that allow businesses to manage their spreadsheet estate like any other IT application, with the same level of data governance and management control. It provides auditors the visibility they need to understand and assess the scale of spreadsheet risk in their critical business processes, allowing them to work collaboratively with the business to mitigate and eliminate these risks.
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Let's talk about how ClusterSeven can increase transparency and control around your spreadsheets and give you confidence in your business critical processes and the accuracy of your data empowering you to make informed business decisions.Contact Us