EY - Accelerating high-growth companies' climb to the top

Strong risk management practices and Internal Audit capabilities as drivers for growth

Accelerating high-growth companies' climb to the top

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Your company stands at the precipice. You need to scale fast, and the time to move is now. The challenge is to turn your vision of long-term sustainable growth into reality.

Strong organizational risk management has a positive impact on long-term earnings performance. We have found that companies with more mature risk management practices generated the highest growth in revenue and earnings before interest taxes, depreciation, and amortization (EBITDA).

The right controls and processes to address the ever-changing risks of meeting company strategies and objectives are an absolute must for sustainable success. Companies that don’t get the basics right can end up paying the price for unplanned announcements, missed earnings guidance, and late regulatory filings — none of which engender investor confidence.

You can build a strong business control environment that will enable you to manage your business growth with confidence. And as you do so, you can develop robust, efficient and cost-effective risk management that will not only help manage business risk, but also drive your business performance.

Your call to action:

  • Assess your internal control and IA capabilities and readiness to support and enhance the growth journey if necessary.
  • Conduct a diagnostic of the internal control and internal audit processes and identify the areas where the value can be added.
  • Collaborate with other company risk management functions to clearly define roles and responsibilities to identify both gaps and overlaps in risk coverage.

Read our full report for details on how we can help you to identify and tackle risk to fuel growth.

EY has the people, the methodologies and the tools to help make your vision of long-term, sustainable growth a reality. As you move beyond internal controls and compliance to a more fully developed risk management environment, we can provide you with the fastest and most efficient way to achieve a credible and effective IA function.

EY chart – Steps to an effective IA function

  • Develop an internal audit-specific strategy that aligns with your organization’s strategic plan.
  • Focus regular risk assessments on enterprise-wide coverage, management participation and a direct link back to your company’s overall strategy and initiatives.
  • Develop an audit plan that includes the areas of greatest risk to your company’s achievement of its strategic objectives, as well as those of most concern to management and the board.
  • Execute on the plan using leading practice methods, tools and enablers, including analytics, as part of a comprehensive program throughout the audit lifecycle rather than on an ad hoc basis.
  • Communicate the results, including strategic business insights and recommendations to drive value.

Risk management functions can provide critical perspective in the growth journey, helping organizations:

  • Design their controls appropriately
  • Cover the risks that matter
  • Drive value through process improvements

The right controls and processes are an absolute must for sustainable growth. They enable compliance, reassure investors and regulators, and build the foundation for driving continuous improvement through the organization.

In short, robust risk management forms the lens that can help you focus on turning your long-term vision into reality.

Let us help you build the internal control and IA functions that enable you to manage your business growth with confidence — and attract investors who can fuel that growth.