How can Technology support Global Compliance and Risk Management?

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Presentation for the CFO working group of the Dubai French business Council

How can technology support global risk and compliance management?

Pierre Arman – Senior Solution Consultant – May 2015

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Agenda

Introduction

Key Facts

Trends in the Region

Challenges in Compliance and Risk Management

How Technology can Help and What to Expect

Best Practices on Technology Deployments

Q&A

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TAX & ACCOUNTING

Leading solutions for accounting, tax, and

corporate finance professionals

FINANCIAL

Comprehensive information solutions for

financial market professionals

GOVERNANCE, RISK, & COMPLIANCE

Tools and services to help customers comply

with rapidly changing regulatory environments

throughout the world

LEGAL

Tools and services for law firms to manage and

grow their businesses

MEDIA

News and information tailored for media and business professionals

Aumentum

INTELLECTUAL PROPERTY AND SCIENCE

Powerful tools to support discovery and

innovation and to protect intellectual

property rights around the globe

Leading Source of Intelligent Information

Thomson Reuters

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Thomson Reuters Tax & Accounting

MENA

• 13 offices

• 650 employees

Clients

• 10,000+ in 57 countries

• 60% of Financial Times Global 500

Users

• 150,000+ worldwide

• 7 out of 7 Global Accounting Firms

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Agenda

Introduction Key Facts Trends in the Region Challenges in Compliance and Risk Management How Technology can Help and What to Expect Best Practices on Technology Deployments Q&A

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Quizz

“??? of CFO survey respondents admit they spend less

than 50% of their time analysing data”

“??? Of CFO surveys respondents continue to use spreadsheets

as dominant compliance tools”

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Quizz

“62% of CFO surveys respondents continue to use spreadsheets

as dominant compliance tools”

Source: PwC Survey 2014

“93% of CFO survey respondents admit they spend less

than 50% of their time analysing data”

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Key Facts

“21% of survey respondents admit spending more than 50% of

their time just gathering data”

Source: CFO Research/Vertex

“90% of survey respondents rely on shared drives and email as the primary

documentation management approach” Source: PwC Survey 2014

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Agenda


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Trends in the Region

Increased global scrutiny on tax function

Governments revenue diversification

VAT introduction in MENA

Accounting standards conversion

E-transition

BEPS

Transition to KYC/KYS compliance

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Agenda


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Typical Challenges faced by MNCs

Decentralization

Missing Filings/Payments

No Audit trail

No real time reports

No clear owner of processes

Suppliers integrity and records

Visibility

Fines & PR damages

Waste of time

Content/infrastructure maintenance

Outsourcing costs

Co-sourcing costs

Inefficient tax calculations

Non scalable systems

Costs

Non standard processes across countries

No central Document repository

No number validation

Passive approach to compliance

Manual intervention

No risk management tools

No clear responsibilities

Control

Different systems

Multi-data sources

Data gathering

Data Consolidation

No ERP integration

Manual intervention

Human mistakes

Automation

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Tax and Risk compliance landscape

Outputs

Filings/Financial Statements Reporting

Tax Compliance/Risk Operations

Labor Internal/External Technology

ERP/ Business Systems

SAP/Oracle Excel/Legacy

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Taking a step back

Labor Technology

OPEX

Increased admin needed

High expertise needed in some cases

Hard to scale up

Low initial investment

Key man (woman) dependency

CAPEX

Maintenance challenge

Reduce expertise needed

Easy to scale up

High initial investment

Hard to manage without a strategy

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Agenda

Introduction Key Facts Updates and Trends in the Region Challenges in Compliance and Risk Management How Technology can Help and What to Expect Best Practices on Technology Deployments Q&A

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Core areas and typical setup

Accounts Production

Document Management

Ad hoc/Custom Reporting

Common Platform

Workpaper Management

Tax Audits

Tax Determination

Tax Returns

Knowledge

Process Management

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Core areas and typical setup

Accounts Production

Document Management

Ad hoc/Custom Reporting

Common Platform

Workpaper Management

Tax Audits

Tax Determination

Tax Returns

Knowledge

Process Management

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Ideal Indirect Tax Scenario

Data Import /

Mapping

ERP

Tax Engine

Compliance Data

Warehouse

Adjustments

Exception Reporting

Country Specific VAT

Returns

Government

E-file/Paper

Do

cum

en

ts

An

alysis

Calls

Central Repository

Workflow Management

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Increased Operation and Financial Performances

Operational tasks automation

Integration with other systems

Time savings gathering and consolidating

Increased productivity through platform

Shared global document solution

Costs Reductions

Tax savings thanks to optimised ETR globally

Labor cost savings

Efficient and faster tax calculation

IT costs minimal if SaaS solution

Upgrades/ Updates included in Licence

Better day to day Risk & Compliance Management

Standard processes across countries

Reusable dataset across solutions

Pro-active approach rather than passive

Real-time compliance visibility

Risk management and control

Roles and responsibilities management

Dashboards and easier reporting Better Cash tax management

leading to increased cash flow

and cash flow per share

Better ETR leading to better

earnings per share

Reduce consultants/outsourcing fees

Avoid fines and reputation issues

Key benefits to expect

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Agenda


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Best Practices on Technology Deployments

Get your basics right

Scalability

Integration

Technology is only as good as…. Who is your vendor / How effectively can we do it

internally?

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Food for Thoughts…

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Agenda


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Thank you