In an active moving industry and regulatory environment, there are still mechanisms to be changed and carried out; in cases when or if tax departments are to encounter the double challenges of real-time assistance to businesses, and in order to efficiently manage risk. Tax executives have three choices when encountering changes: fight, ignore or embrace them.
Tax risks are categorized in two areas: the specific risk and generic risk area. The areas associated with specific risk are the following:
- Transactional risk
- Operational risk
- Compliance risk
- Financial accounting risk.
In addition, the generic risk area involves:
- Portfolio risk
- Management risk, and
- Reputational risk
A great number of tax executives spend more time fighting and ignoring those risks rather than trying to understand that in order to endure them, they should embrace change. It is essential that stakeholders understand what a company’s tax strategy is and how it is managed by executive management and the board of members. Also, it is important to highlight the fact that tax authorities are demanding more and more transparency and accountability in compliance processes. Thusly, implementing a well-governed and persuasive operating program will provide tax authorities assurance in the company’s control of its tax matters.
The interface between tax and risk is fundamental to optimizing processes. It is an assortment of interconnected workflows and workflows normally vary from planned processes to operational and technical advice. Moreover, tax risk management is a key performance measure of a business’ risk management policy as well as being part of a tax strategy. Thus, the expertise prerequisite in tax professionals is, therefore, changing due to the result of the latest new tax environment. The requirement on appealing individuals with risk management and technical skills in today’s market is increasing as well.
Significantly, we have comprehended and accepted the increasingly global view that risk management must be a part of good tax functions. At this point, we recognize the importance of professional risk managers for a useful and proven scheme to effectively managing risks. PECB offers a three-day intensive course to participants who tend to develop the competence to master a model for implementing risk management processes throughout their organization using the ISO 31000 standard as a reference framework. Based on practical exercises, participants acquire the necessary knowledge and skills to perform an optimal risk assessment and manage risks in time by being familiar with their life cycle.
ISO 31000 General Risk Based Professional Training courses offered by PECB are:
For more information, please visit PECB ISO 31000 Training Courses.
About the author
Alba Keqa is a Portfolio Marketing Manager for Risk & Management at PECB. She is in charge of conducting market research while developing and providing information related to Risk and Management standards. If you have any questions, please do not hesitate to contact: marketing.rm@pecb.com.
