Automate Governance, Risk, Compliance (GRC) and Cybersecurity with MobileERP

What is Financial Risk Management?

According to Wikipedia Financial risk management is the practice of protecting economic value in a firm by using financial instruments to manage exposure to risk: operational risk, credit risk and market risk, foreign exchange risk, shape risk, volatility risk, liquidity risk, inflation risk, business risk, legal risk, reputational risk, sector risk etc. Similar to general risk management, financial risk management requires identifying its sources, measuring it, and plans to address them.
Financial risk management can be qualitative and quantitative. As a specialization of risk management, financial risk management focuses on when and how to hedge using financial instruments to manage costly exposures to risk.

Uses of financial risk management

Finance theory (i.e., financial economics) prescribes that a firm should take on a project if it increases shareholder value. Finance theory also shows that firm managers cannot create value for shareholders, also called its investors, by taking on projects that shareholders could do for themselves at the same cost.

When applied to financial risk management, this implies that firm managers should not hedge risks that investors can hedge for themselves at the same cost. This notion was captured by the so-called "hedging irrelevance proposition": In a perfect market, the firm cannot create value by hedging a risk when the price of bearing that risk within the firm is the same

This suggests that firm managers likely have many opportunities to create value for shareholders using financial risk management, wherein they have to determine which risks are cheaper for the firm to manage than the shareholders. Market risks that result in unique risks for the firm are commonly the best candidates for financial risk management.

The concepts of financial risk management change dramatically in the international realm. Multinational Corporations are faced with many different obstacles in overcoming these challenges. There has been some research on the risks firms must consider when operating in many countries, such as the three kinds of foreign exchange exposure for various future time horizons: transactions exposure, accounting exposure, and economic exposure.

In operational risk, big data and data science can be used to create highly efficient systems to detect and prevent fraudulent activities such as fraudulent/speculative trading, rogue trading, and regulatory breaches.

WHAT IS GTM - Global Trade Management?

Global Trade Management is the practice of streamlining the entire lifecycle of a global trade across order, logistics, and settlement activities to significantly improve operating efficiencies and cash flows. The comprehensive nature of GTM is a boon for organizations that fully embrace the cross-functional, system-wide view of global trade. At the same time, because GTM crosses traditional functional silos within organizations, many businesses endure poor performance in their global operations for years before they realize the gains of applying GTM solutions.

With nearly 30% of the world's gross domestic product currently crossing borders, it is clear that global trade is an integral and growing part of business that is here to stay. As a result of this globalization, businesses have created a new concept to define the challenges and opportunities unique to the new highly globalized business environment - Global Trade Management (GTM). While savvy executives are wise to be wary of potentially short-lived buzzwords, there is no questioning the powerful trends that have made investing in GTM solutions such a topic of interest to forward-looking businesses:

The volume of global trade is substantial, and will only increase with time Global trade is significantly more complex and risky than domestic trade There are dramatic operational and cash flow benefits to be gained by businesses that implement and execute global trade operations efficiently

THE CHALLENGES OF GLOBALIZATION
Insufficient planning, execution and synchronization of financial, logistics and regulatory procedures can lead to very costly business challenges, including:
Shipment delays
High inventory
High AR & DSOs
Increased logistics spending
Penalties and fines
Lost sales
Claim write-offs and invoice deductions


THE OPPORTUNITY OF GTM
The promise of GTM is to enable corporations to take advantage of the opportunities of globalization. One way of doing this is through on-demand applications that are integrated into one platform allowing companies to manage their global orders, control global shipments and optimize global finance to help save time and improve working capital for order-to-cash and procure-to-pay cycles.

Finding an integrated solution to provide import and export compliance, inventory management, shipment tracking, supply chain event management and global trade finance solutions such as open account and letter of credit management is now within reach with MobileERP.

SUCCESSFUL GTM STRATEGIES
Global Trade Management requires the integration of the financial supply chain with the physical supply chain, enabling corporations to accomplish the following goals on a continuous basis:
Grow top line revenue and reduce supply chain costs
Provide full visibility into shipments
Minimize working capital in inventory and accounts receivable
Comply with required governmental reporting and security mandates
Measure the efficiency and performance of global trade policies, procedures and trading partners

How to do Global Trade Management?

1. Do Restricted Party Screening

Ensure compliance by properly screening transactions against government lists for both imports and exports.
a. Improve security by ensuring that no goods are shipped to prohibited countries, organizations, or individuals
b. Perform fast and efficient screening in high volume environments with the restricted party screening workbench
c. Satisfy screening requirements and make quick and informed decisions with flexible matching engine options

2. Do Trade Compliance

Manage the legal, regulatory, and corporate complexities of cross-border transactions.
a. Centralize worldwide trade compliance with a global approach that accommodates from-anywhere-to-everywhere scenarios
b. Mitigate financial risk related to compliance while doing business in any country for any process
c. Increase working capital utilization by ensuring that your goods stay moving

3. Do Customs Management

Manage global customs filings and communicate accurately with authorities and trading partners on all cross-border transactions.
a. Maintain oversight, visibility, and control of customs procedures and filings
b. Reduce fines and penalties with more accurate electronic filing and broker communication
c. Automate customs filing procedures, broker collaboration, and e-filings
d. Mitigate financial risk related to customs fines, penalties, and storage fees while doing business in any country

4. Global Trade Intelligence

Monitor key performance indicators and directly transition from analysis to action.
a. Monitor metrics against business targets, benchmarks, and forecasts with configurable dashboards
b. Navigate seamlessly between historical and operational information
c. Make effective decisions with role-based alerts of exceptions and deviations from plans
d. Quickly identify positive and negative trends in transportation operations

5. Estimated Landed Cost

Gain financial visibility into your extended supply chain costs, including transportation and handling fees, insurance, duties, and taxes.
a. Strategically source products and components from lower cost locations by identifying and measuring all extended supply chain costs
b. Receive automatic financial update of variances between landed cost actuals and estimates
c. Gain insight into all of the real costs associated with acquiring products
d. Maximize Logistics Performance - Manage transportation and global trade operations while streamlining everyday warehousing needs.

How to Secure your Data?.

1. Implement Threat Detection System

What is Threat Detection?

Threat detection is the practice of analyzing the entirety of a security ecosystem to identify any malicious activity that could compromise the network. If a threat is detected, then mitigation efforts must be enacted to properly neutralize the threat before it can exploit any present vulnerabilities.
Getting breached is a nightmare scenario, and most organizations that prioritize their information will put smart people and technologies to work as a defensive barrier against anyone who might try to cause trouble. But security is an ongoing process—not a guarantee.
Within the context of an organization's security program, the concept of "threat detection" is multifaceted. Even the best security programs must plan for worst-case scenarios, when someone or something has slipped past their defensive and preventative technologies and becomes a threat.

2. Implement Security Monitorning and Incidence Response Plan.

What is an Incident Response?

When a security team detects a threat, it’s essential organizations are ready for what comes next. That requires having a tightly coordinated incident response plan (IRP) and sequence of actions and events assigned to specific stakeholders on a dedicated incident response team. Some businesses may have their own in-house team, some may outsource their incident response services, while others might take a hybrid approach where they outsource technical analysis but manage the rest of the IRP in-house. Either way, this team should have trained and planned for these incident response events well before any trouble rears its head.

An incident response plan delineates what steps need to be taken, and by whom, when a breach or security crisis occurs in an organization. A robust response plan should empower teams to leap into action and mitigate damage as quickly as possible. Emergency responders go through regular training simulations and process checks, so when a situation arises they know how to act almost by muscle memory. Information security teams would be wise to follow their example: When an emergency occurs, you don’t want to waste time figuring out incident response processes and procedures while precious minutes are ticking away. Having a plan in place becomes paramount. Put your internal incident response team through their paces with threat simulation exercises conducted by an outside service to verify your team’s readiness.

A well-coordinated incident response effort should always include:

a. High-level incident management and coordination
b. Technical analysis of the incident
c. Incident scoping to determine who or what was affected
d. Crisis communications to make sure information is released in a coordinated and beneficial manner
e. Legal response to determine any implications and prepare any needed response or action
f. Remediation and mitigation recommendations and actions to ensure a smooth recovery


Address cyber-threats with real-time intelligence

Identify, analyze, and address cyberattacks while they're happening with our security information and event management (SIEM) tool and 3rd party scanning tools.

3. Do Compliance & Identification of lapses

Five Ways to Reduce Ethics and Compliance Risk

Your company’s good name and the trust of stakeholders are two of its most important assets. You can protect your company’s reputation and increase employee engagement by creating a workplace where ethical conduct is the norm. Reduce ethics risk by taking these five key steps:

a. Honestly assess your needs and resources.
b. Establish a strong foundation.
c. Build a culture of integrity — from the top down.
d. Keep a “values focus” in moments big and small.
e. Re-evaluate and revise as needed.

4. Data protection and privacy management

Manage and comply with evolving data privacy regulations

Simplify privacy and security requirements, operationalize privacy management activities, and manage the data subject rights request lifecycle.

Identity and Access Governance

Monitor and manage identities and control who has access to information and processes within your organization – in the cloud and on premise.

1. Continuous access analysis and insights
Detect and remediate access risk violations: Automate user provisioning, role management, privileged access, and periodic certification, while continuously monitoring users and applications for risk.Check each user logs sheets and access record level changes in chatter or log sheet.

2. Configurable, predefined access policies
Simplify access management in complex on-premise and cloud environments : Deliver an intuitive sign-on experience and use dashboards to pinpoint issues, adjust user access dynamically, improve access compliance, and resolve risks quickly.


3. Comprehensive identity management
Identity management (ID management) is the organizational process for identifying, authenticating and authorizing individuals or groups of people to have access to applications, systems or networks by associating user rights and restrictions with established identities.

4. Streamlined single sign-on - SSO
With Single Sign On - SSO you can access ERP, Emails, Chat, Chatbot, Chatter, Documents and some 3rd party services also. SSO makes life easy for user and relieves him from remembering multiple passwords for multiple applications. SSO eliminates task of multiple sign-ins. Not only does SSO eliminate tasks, but it also helps with such functions as user-activity management and user-account oversight. However, it also carries a major security risk. A hacker who is able to gain control of a user's credentials may be able to penetrate every application to which the user has access. So SSO Passwords needs to be protected.