Risks and Opportunities are Two-Sides of the Same Coin
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) published its Enterprise Risk Management - Integrating with Strategy and Performance (ERM) framework in 2017 to help organizations identify and manage the ambiguity, complexity and volatility of their business world. The COSO ERM Framework defines risk as the possibility that events will occur and affect the achievement of strategy and business objectives. All organizations face uncertainty, but not all confront their risks and opportunities head-on thus jeopardizing shareholder value.
Kral Ussery offers an array of independent risk assessment services ranging from organizational-wide to specific operating, compliance or reporting objectives. This provides both the boardroom and management with an objective glimpse into both internal and external risks and opportunities. We can also assist in developing a robust risk management program including a strong fraud risk management component and cybersecurity component.
COSO’s Enterprise Risk Management - Integrating with Strategy and Performance (ERM) framework
We leverage COSO’s ERM Framework, which consists of the following five components, as well as twenty supporting principles:
Due Diligence and Quality of Earnings ReportsProviding independent advisory and internal assurance services strikes at the heart of why Kral Ussery exists. We believe it is in the best interest of our clients to hear candidly our conclusions rather than marching towards some predetermined conclusion without any real insights. This attitude is central to our due diligence efforts, including quality of earnings reports. A quality of earnings report is not an audit where the emphasis is on the balance sheet rather than on the economic earnings power of the going-concern. Rather a quality of earnings report provides a detailed analysis of a company's revenue and expense components. The primary objective is to assess the sustainability and accuracy of historical earnings, as well as the achievability of future projections.
Our approach is to view each quality of earnings engagement as if we were investing our own money into the target and validating our investment thesis. In performing our analysis, we identify areas that could impair the utility of historical earnings in assessing prospects for the future. The quality of earnings can generally be summarized as the degree to which earnings are cash or noncash, recurring or nonrecurring, and based on precise measurement or estimates that are subject to change. In order for an earnings measure to be considered ‘high quality’ it must reflect commercial cash flows that are sustainable. Call upon the next time you are in need of due diligence efforts.
A Summary of Risk & Opportunity Assessment Services
Our risk assessment knowledge and tools can help you unlock previously unknown opportunities to protect and grow shareholder value. Contact us now to learn how to start.
Until you spread your wings you’ll have no idea how far you can fly