Why Does It Matter?
Spreadsheet risk comes from the uncontrolled use of spreadsheets in key business processes & reports and is rapidly moving up the corporate agenda. In part, this is 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.
What Causes Spreadsheet Risk?
Spreadsheet risk is more likely to occur if there is a lack of:
- Understanding of what spreadsheets are used across the business.
- Appreciation of the business impact of spreadsheet errors.
- Clear ownership of spreadsheets across the business.
- Process around how changes are made to spreadsheets.
- Defined risks to the business due to spreadsheet complexity.
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.