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Assure accuracy and minimize risk with an Internal Control System

Implementing and maintaining an effective internal control framework can be complex.

Challenges of limited resources, accurately identifying and mitigating risks, lack of knowledge, and training requirements or organizational resistance can be common.

But they don’t have to be.

Introducing Impero’s Internal Controls solution. A well-designed internal control framework helps achieve your compliance objectives, minimize losses, and reduce process-related risks.

Optimize your company’s processes and performance, providing a solid foundation for success, with popular control models like COSO and COBIT serving as templates to get you started today.

Solutions to suit every business

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Internal Control Systems at a glance

Whether you’re the one-person compliance team looking for a template to get you started or an ICS professional interested in how Impero can help you achieve accuracy and minimize risk, we have you covered. Click on the below headlines to jump to each section.

What is an Internal Control System (ICS)?

What are internal controls?

The internal control system (ICS) are systematically-designed controls and organizational measures in a company aimed at achieving the company’s objectives and minimizing losses. The ICS is an essential component of a company’s structural and procedural organization and can reduce process-related risks to an acceptable level if implemented properly. Control models such as COSO or COBIT are often used as the basis for an ICS. 

The core areas of ICS are:

Ensuring the effectiveness and profitability of business activities (operations)

Ensuring the correctness and reliability of internal and external accounting (reporting)

Adherence to the relevant legal regulations for the company (compliance)

ICS requirements and challenges in detail

Requirements from the legislation

The European Commission (EC) published a Consultation Paper which addresses strengthening the effectiveness of risk management and internal control systems.

In particular, legal requirements in Germany oblige Corporations to set up an ICS and monitor its effectiveness. In particular, the Group management report must address the objectives and methods of risk management, price change and liquidity risks, as well as risks from possible cash flow fluctuations.

Relevance for SMEs and other non-listed companies:

ICS as measures against: 

  • Incorrect annual financial statements and therefore public financial reports
  • Financial losses due to possible accounting fraud and embezzlement
  • Recurring errors in invoices and high procedural correction costs
  • Inaccurate facts and figures in decision-making materials and thus economic damage

Further framework conditions and challenges

  • Limited human resources for the implementation of an ICS
  • Concerns about a complex implementation project in terms of both content and technology
    • Complex risk identification and development of strategies and risk mitigation measures
    • Implementation to all employees
    • Confident in performing controls without training
  • Constant changes of corporate, technological and environmental conditions require continuous adaptation of the ICS.
  • Lack of knowledge of legal requirements in many companies
  • Management is responsible for creating an effective ICS, with auditors only covering selected accounting-related risks and parts of the ICS
  • Perception by employees as monitoring

Internal Control System in Impero

Addressing the main concerns

Concerns about a complex implementation project:

  • Duty-compliant within a few weeks supported by an efficient import function
  • Flexibility in the successive development of risk and control frameworks
  • Motivation of those ICS responsibles through an early sense of achievement
  • Ensuring operational effectiveness by reducing manual administration and reporting efforts, including:
    • Automated task dispatch by email
    • Reminders in the event of non-execution
    • Structured compilation of results and documentation
  • Automated task execution in participating entities by means of scalable template function and end-user-friendly modification
Impero Marketplace Internal Controls solution Product Image

Complex risk identification and development of strategies and risk mitigation measures.

Lack of knowledge among many companies about the legal requirements:

  • Modular and cost-effective content packages developed by technical and system experts
  • Support from situation analysis, conception and implementation through to reporting by trusted Impero partners

Learn more about content packages:

Implementation by all employees following training and appropriate communication:

  • Confident operation in control execution without training – confirmed by Impero customers
  • Fit to set up and manage controls within one hour
  • Contribution to increasing the level of acceptance and smooth incorporation into daily routines
  • Positive associations with compliance tasks through a perceived ease of use

Constant changes of corporate, technological and environmental conditions require continuous adaptation of the ICS:

  • Ensuring updated control measures in accordance with the latest laws and regulations with flexible mass changes
Impero Marketplace Internal Controls solution Product Image
Impero Marketplace Internal Controls solution Product Image
Impero Marketplace Internal Controls solution Product Image
Impero Marketplace Internal Controls solution Product Image

"Impero makes this possible with just a few clicks and with quick and great overview."

“One of the primary reasons why I have implemented Impero in two different companies is because of the incredible flexibility you have in Impero.”

Ragna Kr. Jóhannsdóttir – Group Head of Internal Controls and Enterprise Risk Management, STARK Group

Read about how the STARK Group consolidates information across entities using Impero and processes it into meaningful reports.

Ready to assure accuracy in your Internal Control System?

Fill out your details below and we’ll get in touch to hear more about your business, your compliance challenges and how you want to optimize your company’s processes and performance with Impero’s Internal Controls template.