Global Risk Report 2010

The World Economic Forum has published Global Risk Report 2010. The document provides political and business leaders with a framework for further discussion of a risk landscape that is increasingly complex and urges a consideration of the longer term, global implications of risks in areas beyond their immediate focus. The key findings are as follows:

• The events of the past year have revealed a fundamental need to change thinking on global risks and how they are managed. With unprecedented levels of interconnectedness between all areas of risk, the report stresses that the need to combat governance gaps globally is greater than ever. It argues that this can only be addressed by an overhaul of current values and behaviours by decision-makers to improve coordination and supervision.
• Fiscal crises and unemployment, underinvestment in infrastructure – especially in energy and agriculture – and chronic disease are identified as the pivotal areas of risk over the next years.
• Other risks identified as equally systemic in nature, and requiring better global governance, are transnational crime and corruption, biodiversity loss and cyber-vulnerability.

CICA/RBC Business Monitor (Q4 2009)

This CICA/RBC Joint Report interviews chartered accountants (CAs) working in senior executive positions for Canadian businesses, to determine their views regarding the economic prospects for their company, province and Canada in the upcoming year. The key findings are as follows:

• After two consecutive quarters of significant growth in optimism, the final quarter of 2009 was virtually unchanged from the previous quarter - 48% of respondents expressed optimism in the economy over the next twelve months, compared to 46% from Q3 2009. Of the remaining Q4 2009 respondents, 39% were neutral while 13% were pessimistic about the year ahead.
• On average revenues (+ 3.3%), profits (+3.2%) and employment numbers (+0.8%) are expected to increase in the next twelve months. In the same quarter a year ago, projections called for decreases in all three categories.
• In summary, 23% of respondents stated that their company’s profits did not decline during the recession.

(Read the CICA Media Release and Background Papers on the Survey.)

Canada - Innovation, Risk and Control

The Canadian Comprehensive Auditing Foundation (CCAF) has published research on promoting innovation, risk management and control in public sector organizations. As governments in Canada and abroad address fiscal pressures, they will be looking for ways to improve productivity and management practices for all continuing programs. Based on extensive consultations with public sector managers and auditors across Canada, “Innovation, Risk and Control” represents a practical manager’s guide to encouraging innovation, understanding control, managing risk, reducing red tape… and delivering better results for citizens. The CCAF will be following up by publishing case studies and other tools that will help managers apply the guidance contained within this document.

SEC Comes Clean on Climate Disclosures

New guidance from the US Securities and Exchange Commission (SEC) will prompt companies to reexamine how they explain the effects of climate change on their business in regulatory filings. The clarification from the regulator arrives just as companies with a calendar year-end are putting together their 10-Ks. Investor groups have been critical of companies for their lack of candor about climate-change risk, and of the SEC for allowing them to get away with it. (Read the SEC Press Release and the article SEC Comes Clean on Climate Disclosures at CFO.com.)

Canada - Report on Industry e-newsletter and webinars

The Canadian Institute of Chartered Accountants (CICA) periodically publishes an electronic newsletter called Report on Industry (ROI). The complimentary ROI e-newsletter is a valuable source of timely synopses of news, research, events, best practices, standards and regulations, recent publications and more – with links to the web-based sources – that can help interested parties keep up-to-date. The Report on Industry webinar, offered 6 times a year, highlights information on latest trends and views, standards and regulations, information technology and legal matters. (Visit the CICA website for more information and to subscribe.)