Spreadsheet Woes – Burden in SOX Compliance and Other Regulations

End User Computing (EUC) or end User Developed Application (UDA) systems like spreadsheets used to be ideal ad-hoc solutions for data processing and financial reporting. But those days are long gone.

Today, due to regulations like the:

  • Sarbanes-Oxley (SOX) Act,
  • Dodd-Frank Act,
  • IFRS (International Financial Reporting Standards),
  • E.U. Data Protection Directive,
  • Basel II,
  • NAIC Model Audit Rules,
  • FAS 157,
  • yes, there?s more ? and counting

a company can be bogged down when it tries to comply with such regulations while maintaining spreadsheet-reliant financial and information systems.

In an age where regulatory compliance have become part of the norm, companies need to enforce more stringent control measures like version control, access control, testing, reconciliation, and many others, in order to pass audits and to ensure that their spreadsheets are giving them only accurate and reliable information.

Now, the problem is, these control measures aren’t exactly tailor-made for a spreadsheet environment. While yes, it is possible to set up a spreadsheet and EUC control environment that utilises best practices, this is a potentially expensive, laborious, and time-consuming exercise, and even then, the system will still not be as foolproof or efficient as the regulations call for.

Testing and reconciliation alone can cost a significant amount of time and money to be effective:

  1. It requires multiple testers who need to test spreadsheets down to the cell level.
  2. Testers will have to deal with terribly disorganized and complicated spreadsheet systems that typically involve single cells being fed information by other cells in other sheets, which in turn may be found in other workbooks, or in another folder.
  3. Each month, an organisation may have new spreadsheets with new links, new macros, new formulas, new locations, and hence new objects to test.
  4. Spreadsheets rarely come with any kind of supporting documentation and version control, further hampering the verification process.
  5. Because Windows won’t allow you to open two Excel files with the same name simultaneously and because a succession of monthly-revised spreadsheets separated by mere folders but still bearing the same name is common in spreadsheet systems, it would be difficult to compare one spreadsheet with any of its older versions.

But testing and reconciliation are just two of the many activities that make regulatory compliance terribly tedious for a spreadsheet-reliant organisation. Therefore, the sheer intricacy of spreadsheet systems make examining and maintaining them next to impossible.

On the other hand, you can’t afford not to take these regulations seriously. Non-compliance with regulatory mandates can have dire consequences, not the least of which is the loss of investor confidence. And when investors start to doubt the management’s capability, customers will start to walk away too. Now that is a loss your competitors will only be too happy to gain.

Learn more about our server application solutions and discover a better way to comply with regulations.

More Spreadsheet Blogs


Spreadsheet Risks in Banks


Top 10 Disadvantages of Spreadsheets


Disadvantages of Spreadsheets – obstacles to compliance in the Healthcare Industry


How Internal Auditors can win the War against Spreadsheet Fraud


Spreadsheet Reporting – No Room in your company in an age of Business Intelligence


Still looking for a Way to Consolidate Excel Spreadsheets?


Disadvantages of Spreadsheets


Spreadsheet woes – ill equipped for an Agile Business Environment


Spreadsheet Fraud


Spreadsheet Woes – Limited features for easy adoption of a control framework


Spreadsheet woes – Burden in SOX Compliance and other Regulations


Spreadsheet Risk Issues


Server Application Solutions – Don’t let Spreadsheets hold your Business back


Why Spreadsheets can send the pillars of Solvency II crashing down

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Saving Energy Step 4 – Breathing Life into the Project

Today we consider the fourth step on the road to energy saving, when we introduce key contributors who will pull it all together. We have been on quite a journey. We started by developing a management system and then followed up with practical improvements, while challenging the assumptions behind the energy bills we may have paid unchallenged in the past.

After we knock off the big-ticket savings, managing energy becomes a process of improvement characterised by smaller increments. Kaizen is the classic model and it includes everybody in the organization from the janitor to the CEO. I inverted the pyramid deliberately, because ideas deserve considering no matter where the originator parks in the company yard.

People ? our people ?are truly central to the process. Energy adds extra leverage to their efforts, keeps them warm in winter, cool in summer and powers up the ovens in the company canteen. They are brimming over with ideas because that is the nature of being human. The best managers are those who release this potential and participate in its flowering,

It is important not to threaten job security. So many savings-driven initiatives have ended in job losses that people on the shop floor automatically suspect another round. Shrinking carbon footprints is about making the world a better place for everyone. We become more effective when we turn ?increasing profit? into making the enterprise sustainable in itself.

Engaging employees is more than office circulars and speeches at the Christmas Party. Organizations are organic places where trust grows slowly but conflict can flare in a moment. Before involving your people in your energy ?kaizan? make sure your words and intentions overlap perfectly. You will be amazed at the power you unlock in your people.

The best way I know of doing this is through your health and safety structure, which then becomes your environment, health and safety structure EHS. As you explore this idea at safety committees you find these things overlap, in the sense of creating people-centric environments at work and home.

That said, there is no magic formula for achieving employee engagement. The fact that people universally want a cleaner planet is the power to tap into. One way to form a team is to create one artificially and give it a task. The other is to work together towards a shared objective. Which one do you prefer?

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Recognizing Your Carbon Footprint

Countless times we have heard of the term ?carbon footprint?. Perhaps we have seen and heard it on TV or read it in newspapers, magazines and published articles. Indeed, it has been an expression familiar to everyone as it is always associated with climate change, carbon emissions, global warming, pollution and other environmental issues. Carbon footprint is real. It exists and, in fact, continues to affect the world we live in.

Defining Carbon Footprint

Two essential words comprise the term carbon footprint. Fundamentally, ?carbon? means the carbon dioxide circulating in the atmosphere. It is also the general word used for other greenhouse gasses emitted into the air. On the other note, ?footprint? refers to impact or effect.

Think about the footprints people leave on the beach sand upon walking on the shore. That is exactly what carbon footprint is like. It’s about the impact humans leave on the earth in the form of carbon dioxide and other greenhouse gases.

Calculating Your Personal Carbon Footprint

The food we eat, products we use, vehicles we ride on and electricity we consume emit carbon dioxide. In fact, our activities, lifestyle, homes, and countries contribute to climate change. And carbon footprint is the best estimate we can get of the full impact our doings affect the earth. It quantifies the amount of our carbon emission. With this, knowing how to calculate your personal carbon footprint is important.

There are various standards in calculating one?s carbon footprint. There is the so-called ?lifestyle assessment? and the input-output analysis. Lifestyle assessment works by adding up all the feasible emission pathways while the input-output analysis involves determining the total emissions of a particular country, dividing it by the carbon-emitting sectors and estimating the overall emissions of each sector. The input-output analysis makes sure that no emission pathway is missed out.

Calculating your carbon footprint manually is an effective way for you to understand your emissions better. You just need a lot of patience to learn how each footprint is generated. Moreover, there are also several resources online that can help you calculate your carbon footprint. Online carbon calculators are abundant across the web. To make your life simpler, you can opt to try those online calculators and easily determine your carbon emissions. However, such calculators vary in scope. So make sure that the online carbon calculator, you choose, is one that?includes emissions both direct and indirect.

Avoiding Toe Prints

A toe print is a portion of a footprint. Sometimes, people are misled in their calculations because they only get a carbon toe print instead of a footprint. The idea is that, you should cover a smart scope of your carbon emissions. Not only measuring a portion, but the whole.

Say for example, running a conventional car. The carbon emitted from the car is not only the fuel combustion from the diesel or petrol.? Likewise, the carbon released as the gas was processed and transported to your nearby gasoline station is also an addition to your carbon footprint. If you do not understand this, you will end up calculating your direct emissions while neglecting the indirect ones.

Be wise in calculating your carbon footprint. And when in doubt, whether you are an individual or a business entity, you should seek help from experts who can do it right.

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Directions Hadoop is Moving In

Hadoop is a data system so big it is like a virtual jumbo where your PC is a flea. One of the developers named it after his kid?s toy elephant so there is no complicated acronym to stumble over. The system is actually conceptually simple. It has loads of storage capacity and an unusual way of processing data. It does not wait for big files to report in to its software. Instead, it takes the processing system to the data.

The next question is what to do with Hadoop. Perhaps the question would be better expressed as, what can we do with a wonderful opportunity that we could not do before. Certainly, Hadoop is not for storing videos when your laptop starts complaining. The interfaces are clumsy and Hadoop belongs in the realm of large organisations that have the money. Here are two examples to illustrate the point.

Hadoop in Healthcare

In the U.S., healthcare generates more than 150 gigabytes of data annually. Within this data there are important clues that online training provider DeZyre believes could lead to these solutions:

  • Personalised cancer treatments that relate to how individual genomes cause the disease to mutate uniquely
  • Intelligent online analysis of life signs (blood pressure, heart beat, breathing) in remote children?s hospitals treating multiple victims of catastrophes
  • Mining of patient information from health records, financial status and payroll data to understand how these variables impact on patient health
  • Understanding trends in healthcare claims to empower hospitals and health insurers to increase their competitive advantages.
  • New ways to prevent health insurance fraud by correlating it with claims histories, attorney costs and call centre notes.

Hadoop in Retail

The retail industry also generates a vast amount of data, due to consumer volumes and multiple touch points in the delivery funnel. Skillspeed business trainers report the following emerging trends:

  • Tracing individual consumers along the marketing trail to determine individual patterns for different demographics and understand consumers better.
  • Obtaining access to aggregated consumer feedback regarding advertising campaigns, product launches, competitor tactics and so on.
  • Staying with individual consumers as they move through retail outlets and personalising their experience by delivering contextual messages.
  • Understanding the routes that virtual shoppers follow, and adding handy popups with useful hints and tips to encourage them on.
  • Detecting trends in consumer preferences in order to forecast next season sales and stock up or down accordingly.

Where to From Here?

Big data mining is akin to deep space research in that we are exploring fresh frontiers and discovering new worlds of information. The future is as broad as our imagination.?

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