Press Release
For Immediate Release
Singapore CFO Institute and PricewaterhouseCoopers Gathered Views of Chief Financial
Officers on the Importance of Enterprise Risk Management
Singapore, 14 May 2013 (Tuesday) - The Singapore CFO Institute and PricewaterhouseCoopers
(PwC) held two series of Roundtable discussions in January 2013 with Chief Financial Officers
(CFOs) from listed companies and multinationals. The topic of discussion was Enterprise Risk
Management, a concept interlinked with the daily dealings of a CFO.
2.
The Roundtable discussions culminated in a detailed report, ‘State of Play – Chief
Financial Officers & Enterprise Risk Management’. The report was released today at the CFO
Connect, the flagship networking initiative of the Singapore CFO Institute.
Enterprise Risk Management in the Spotlight
3.
The world is ever-changing and complex. It is thus by nature that the business
environment is fraught with uncertainties and risk. The renewed focus on Enterprise Risk
Management comes in the wake of the amendments to the SGX-ST Listing Manual and the
revised Code of Corporate Governance.
4.
At the Roundtable sessions, questions were asked with regards to how organisations
should identify, assess, respond and monitor their key risks. Concerns were also raised as to
where risk management responsibility resides.
5.
Participants agreed that there is no definitive model for Risk Management. However,
there are six common characteristics that govern the framework – Risk strategy and policy; Risk
process; Risk structure; Culture; Risk systems and tools; and Assurance. The six characteristics
are included in the report as areas of considerations in a checklist against the Enterprise Risk
Management Framework.
CFOs Offer Perspectives on Enterprise Risk Management
6.
Participants were of the same view that risk management is a pervasive factor in many
business decisions. It is seen as crucial to sustain business worth and drive opportunity and
growth for the organisation.
7.
Participants also felt that each organisation faces different levels of risk in various
maturity stages. As such, it is difficult to create a one-size-fits-all model to monitor and manage
risk.
8.
Proper frameworks and processes such as effective countermeasures, consistent risk
management methodologies and a balancing check between qualititative and quantitative risk
analysis should be in place to effectively track, monitor and report risks.
Should CFOs Play the Dual Role of CFO and Chief Risk Officer (CRO)?
9.
The CRO is a loosely interpreted designation. However, the responsibility often falls on
the CFOs to operate as de-facto CROs.
10.
Participants were unanimous in the opinion that Risk Management should not be tasked
upon a single person. It is agreed that the Board, with the CFO as a key member, is best
equipped to determine the overall approach to risk governance. In this regard, the composition of
the Board is crucial.
11.
If an officer is required to be appointed to oversee Risk Management in an organisation,
the CEO (supervised and supported by the Board) may be the best candidate to provide executive
oversight and manage the company’s risk management efforts.
12.
Mr. Chng Lay Chew, Chairman of Singapore CFO Institute said, “The Singapore CFO
Institute has been growing from strength to strength in keeping to our principle of being “an
Institute for practitioners, by practitioners”. With the recent amendments to the SGX-ST Listing
Manual and the revised Code of Governance, it is more imperative than ever before for CFOs to
understand and better manage the risks of the organisation. The Singapore CFO Institute
recognises the important role that CFOs play in enterprise risk management and has therefore
embarked on this study with PwC to provide clarity on the role of CFO in enterprise risk
management.”
13.
Mr. Ng Siew Quan, Partner of PwC and Moderator of the Expert Panel at the CFO
Connect, said “Enterprise risk management does not operate in isolation in a corporation, but
rather is an enabler of the management process. Enterprise risk management is part of corporate
governance. It provides information to the board of directors and to the audit committee on the
most significant risks and how they are being managed. CFOs have to work together with their
Management team and the Board in elevating risk management to a top strategic priority,
combining best practices and creating a structured approach to risk governance.”
14.
More details of the report ‘State of Play – Chief Financial Officers & Enterprise Risk
Management’ are available at http://www.cfoconnect.com.sg.
For media enquiries, please contact:
Masie Ng
Senior Associate Director
Industry Development
Singapore Accountancy Commission
DID: 6325 0207
Email: [email protected]
Lin Shuzhen
Assistant Editor
Editorial and Communications
Singapore Accountancy Commission
DID: 6325 5036
Email: [email protected]
About Singapore CFO Institute
The Singapore CFO Institute is a platform for CFOs and aspiring CFOs to connect, learn and
celebrate their roles in business and the commounity. The Singapore CFO Institute’s working
philosophy of being ‘An Institute for Practitioners, by Practitioners' ensures the relevance of its
activities. The Singapore CFO Institute is supported by the Singapore Accountancy Commission.
About PricewaterhouseCoopers
PwC helps organisations and individuals create the value they’re looking for. We’re a network of
firms in 158 countries with more than 180, 000 people who are committed to delivering quality
in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting
us at www.pwc.com
About the Singapore Accountancy Commission
Established in April 2013 as a statutory body of the Singapore government, the Singapore
Accountancy Commission (SAC) collaborates with local and international communities to drive
accountancy excellence in Singapore through talent development, professional qualification,
research and thought leadership.
The SAC’s goal is to transform Singapore into a leading global accountancy hub for the Asia
Pacific region by 2020. In fulfilling this mission, the SAC seeks to uphold the values of being
relevant, insightful, collaborative and advocative.
###
Fact Sheet 1 – CFO Connect Programme
Time
Activity
11.45am
Registration and networking
12.15pm
Welcome address by Mr. Chng Lay Chew,
Chairman, Singapore CFO Institute Advisory Council
12.25pm
Lunch commences
12.40pm
Presentation of SCFOI-PwC Roundtable Report:
State of Play – CFOs & Enterprise Risk Management
Speaker: Mr. Ng Siew Quan, Partner, Risk & Controls Solutions,
PricewaterhouseCoopers LLP
1.00pm
Lunch continues
1.30pm
Panel Discussion: State of Play – CFOs & Enterprise Risk Management
Panel members:
-
Mr. Goh Yeow Tin, Director (Non-Executive & Lead Independent),
VICOM Ltd
Mr. Holger Linder, CFO, TÜV SÜD Global Product Services
Mr. Kwek Buck Chye, CFO, StarHub Ltd
Mr. Shanker Iyer, Chairman, Singapore International Chamber of
Commerce
Moderator:
-
2.10pm
Mr. Ng Siew Quan, Partner, Risk & Controls Solutions
PricewaterhouseCoopers LLP
Presentation of appreciation gifts
Dessert served
2.30pm
End of event
Fact Sheet 2 – Composition of Roundtable Participants
S/N
Name
Designation
14 January 2013
1.
Mr. Chong Chow Pin
CFO, Jaya Holdings Ltd
2.
Mr. Choo Chek Siew
CFO, ComfortDelGro Corporation Limited
3.
Mr. Chow Kam Wing
CFO, Micro-Mechanics (Holdings) Ltd
4.
Ms. Eleana Tan
CFO, Singapore Technologies Engineering Ltd
5.
Mr. James Ling
CFO, Hai Leck Holdings Ltd
6.
Mr. Kwek Buck Chye
CFO, StarHub Ltd
7.
Mr. Phua Sian Chin
CFO, TEHO International Inc Ltd
8.
Mr. Loh Uantchern
Chief Executive, Singapore Accountancy Commission
23 January 2013
1.
Mr. Bernhard Schmitt
CFO, DKSH
2.
Ms. Gail Shan
Group Financial Controller, KTL Offshore Pte Ltd
3.
Dr. Georg Fendt
CFO, TÜV SÜD Product Service
4.
Ms. Nancy Tan
CFO, S&I Systems Pte Ltd
5.
Mr. Yutaka Niikura
CFO, Hitachi Asia Ltd