Feburary, 2016

Risk Management

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Direct Tax



In today’s dynamic business environment, risk is inevitable. Identifying and managing risks in a timely and effective manner is the need of the hour. Business Risk Services (BRS) focuses on helping clients to recognise and mitigate risks by setting up robust business processes, institutionalising the right internal controls, better use of information technology and achieving operational performance improvements.

We serve clients, ranging from listed companies to multinationals, but more importantly we focus on dynamic organisations which are promoter and family managed businesses. Our practice also helps several Private Equity Funds in establishing governance framework at their portfolio companies.

We provide a wide range of services which include:

Corporate Governance
The recent global financial meltdown presented a number of challenges for most economies – at both the macro and micro level. As a result, today we are witnessing a paradigm shift in the market and investor outlook. Investors now look at every financial statement with great care and voice their concerns for a stronger and more independent corporate governance framework.
The instability in the market urges companies to take quick but cautious steps. Companies are required to respond by enhancing assurance on their activities and by adopting more transparent corporate governance practices to rebuild investor confidence.

Along with the corporate initiatives and the requirements mandated by investors, government policies have brought about an equally strong focus on corporate governance.

The long term sustainability of a business rests on the pillars of transparency and fairness. Those with a long term vision for their organisation acknowledge that corporate governance is more about inclusive and sustainable growth rather than enforcement.

As the importance of corporate governance and accountability increases, companies are in search of a best-fit business risk solution. At PNK we offer the below mentioned range of solutions that are based on global best practices and tailored to meet your requirements.

  • Enterprise risk management
  • Clause 49 readiness
  • CxO advisory

Internal audit
The ever increasing requirement for organisations to adopt and demonstrate good corporate governance practices is forcing a change in approach to control assessment in order to fulfill both compliance and operational demands. Using a risk-based approach, a skilled Internal Audit function can provide the necessary focus to co-ordinate an organisation’s response to these new demands.

For many organisations, the range of skills needed to address wider strategic and operational risks associated with Supply Chain, Sales, Procurement, Treasury and IT system, is simply too wide to be found in a small team.

Fulfilling modern expectations of Internal Audit will most inevitably result in an imbalance between resource and internal expertise. Through the delivery of solutions geared to meeting your needs, have fully outsourced, joint sourced, peer review or internal audit advisory services, we can reduce this imbalance.

Our methodology is designed to support your needs at any stage, whether it involves setting up and delivering an entire Internal Audit function or building on work already performed and providing the resource to complete the strategic audit plan you may already have in place.

Performance enhancement
As companies change their methods or resources over time, operations often become out-of-sync and less efficient, leading to wasted time, energy and materials, as well as a loss of revenues.

Our performance enhancement services include the following:
  • business process improvement
  • supply chain improvement
  • working capital optimisation
Our service is focused on improving revenue, profits, working capital and customer satisfaction for our clients.

Standard operating procedure
Companies today are growing at exceptional rates, especially in developing economies, and this poses a number of challenges related to multi-location presence, diverse organisation structure across locations, absence of comprehensive authority level matrix, stand alone accounting and other systems all of which result in diverse practices and processes. Standardisation of operations across offices, manufacturing units and service centers is important both from an internal efficiency as well as external customer satisfaction perspective.

PNK ‘s services focus on various tiers on standardisation of business that help you decide what level your Company is ready for and also allow you to plan a phased approach to business process standardisation. Our services include:
  • SOP development
  • SOP validation
  • designing authority level matrix
IT Advisory
Information technology certainly provides cutting – edge to business operations. However, an absence of sound IT management practices could deeply impact a business. Taking adequate measures to ensure security and availability of IT systems and keeping them updated in light of ever increasing challenges is not only desirable but necessary.

For all its benefits, IT brings great complexity which many companies struggle to manage. With our below mentioned range of services, we help you create and sustain a robust and secure IT environment that aligns with your business goals.

IT security
  • Information security management system (ISMS) implementation
  • IT vulnerability assessment
  • third party information security review
  • software asset management review
  • development of security policies
ERP assistance
  • package / vendor selection
  • project management
  • pre/post Enterprise Resource Planning (ERP) implementation review
IT strategy & planning
  • review / assistance in development of IT strategy / blue prints
  • application development planning
  • IT due diligence review
  • design / review of enterprise architecture
  • development and assessment of Disaster Recovery Plan (DRP)
SSAE 16/ISAE 3402
Outsourcing is a growing trend and companies increasingly depend on third party providers to deliver critical services. These third party providers/service organisations are increasingly operating in a competitive environment where they are required by shareholders, customers, regulatory authorities and other stakeholders to provide assurance that their operations are well controlled.

The above requirement is compounded by organisations having to become more accountable for identifying, managing and controlling business risks. In response to these expectations, Independent Assurance provides comfort to the clients that the service organisation has appropriate controls in place and also provides additional comfort to the external auditors.

In order to assist the service organisation and to ensure its users establish a reliable and regular process of service organisation reporting, we offer the following services:
Readiness Assessment Undertaking diagnostic review to assess the level of readiness of the company to undergo an independent audit under the third party reporting standards.

Management Support
Assisting the organisation in developing the system & control documentation required for the Independent Audit. Additionally, assist with Management Assessment of Internal Controls.

Independent Audit Performing independent audit under SSAE 16 / ISAE 3402 for design effectiveness of controls (Type I) and operating effectiveness of controls (Type II).

SOX Compliance
The Sarbanes-Oxley Act (SOX) was passed in 2002, while it seems like everyone is still arguing about implementation issues and which companies should be subject to which provisions, the main effect of Sarbanes-Oxley is to move the ultimate responsibility for the accuracy of financial reports from the outside auditor to the company’s management.

Financial reporting requirements and best practices have always focused on internal controls. With SOX, it’s the company’s responsibility to prove that internal controls actually exist and are working effectively. Hence, the resultant requirements are around documentation as well as a process and workflow. We provide below mentioned range of services relating to SOX compliance:
  • design / documentation
  • program management
  • control testing

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