Risk management is one of the central topics for successful corporate management. An internal control system (ICS) supports companies and institutions in preventing misuse and damage. In order to reliably manage risks and controls across all departments, integrated process documentation and workflow-supported monitoring are necessary. Stephan Gindert, manager at Cofinpro AG, explains to us in the interview series « 3 Questions to » his view on the exciting topic of ICS.
1. What does Cofinpro do?
Cofinpro is the management, specialist and technology consultancy for Germany’s leading banks and fund companies. Our experts focus on digitalization, new market requirements and regulation. We build on a consulting concept that covers all elements of the value chain for companies in the financial industry. Our services range from agile transformation or the essay of efficiency improvements to regulation and digitization in the credit and securities business to the design of modern platform architectures.
2. What risks does a company or institution expose itself to without an ICS and what are the benefits of implementing it?
Companies that are required to act in accordance with the German Banking Act (Kreditwesengesetz) or Section 80 of the German Securities Trading Act (WpHG) are obliged to maintain an internal control system. The main purpose of the internal control system is to support the company or institution in ensuring the functionality and efficiency of business processes and in obtaining reliable operational information.
It also provides significant support in ensuring compliance with rules within the organization. Thus, making a significant contribution to safeguarding assets.
3. How can an ICS be implemented efficiently in a company or institute?
In our experience, there are two key success factors for an efficient ICS:
- A uniform understanding of the individual classes and details within the ICS, especially among all stakeholders.
- A modern, user-friendly tool for recording all relevant data that can evaluate it for control purposes.
Stephan Gindert
Manager at Cofinpro AG
www.cofinpro.de