Chemical companies have strict corporate governance and internal control guidelines and codes of conduct, by the nature of their business. Also, chemical companies must still report to and create value for their stakeholders. Attempting to meet these guidelines and satisfy stakeholders, while also managing and mitigating the complex internal control frameworks of a chemical company, such as health and safety regulations and production line and laboratory procedures, can be an arduous process.
In addition to managing and mitigating internal controls, it is important to create an internal control framework to foster efficiencies, and enable effective operational risk management duties especially those related to the normal operations of a process company; such as laboratory, production line and factory responsibilities. Creating such a framework at a process industry firm, can be daunting due to the large number of regulations in these industries, in addition to attempting to find areas for improvements. There can be very large payoffs for creating such a framework though; it can enable better operational risk management (ORM) and offer the enterprise the opportunity to get “in control” of its risks, controls and processes, in addition leading to better reporting to stakeholders too.
CREATING AN INTERNAL CONTROL FRAMEWORK
With the Internal Control solution from BWise an enterprise can build their internal control framework with all of its associated risk and controls. Controls, such as lab safety reports or production line schedules, can be periodically tested and key risk areas identified, ultimately culminating in a complete ORM review of business risks, processes and the internal control framework. BWise provides an integrated Governance, Risk and Compliance (GRC) solution to enable this. It is composed of several components an enterprise can use to manage its internal controls and frameworks, but also identify and monitor key risk indicators and areas for improvement.
DRIVING EFFICIENCIES AND REPORTING ON CONTROLS AND RISKS FOR IMPROVEMENTS
Reports on a corporation’s controls and its framework can be generated from the BWise solution. Those reports, or even dashboard views, can then be used to evaluate the enterprise and find key areas for improvement by risk managers as part of continuing ORM. For example, BWise has enabled Roche, a BWise customer, to enhance its efficiency and effectiveness of financial reporting and control processes across its global organization. This enabled Roche to easily define, monitor, and mitigate its risks, based on both the global and the individual requirements of each business unit.
BWise enables a corporation to get a broad view of itself, that is, across all of its departments or divisions and each of those unit’s individual internal control frameworks, but, in addition, BWise also enables the corporation to dive deep down into its data and focus on specific risks and controls and examine how those controls affect the overall enterprise. BWise truly provides a profoundly valuable GRC solution, by enabling the chemical enterprise and executives to take that broad, grand view of itself, but also providing the details on controls and risks that is needed on a daily basis by line of business managers in the lab or on the factory production floor.