Establishment And Maintenance Of Internal Control And Risk Management: Fill & Download for Free

Any Company that is publicly traded on one of the American stock exchanges (for example, the NYSE, NASDAQ), is required by the SEC to provide audited (by an independent accounting firm) financial statements to its investors in its 10-K filing on an annual basis. Most major stock exchanges such as in Canada, European stock exchanges like those found in the UK, France, Germany, and Italy / Asia, like Japan, South Korea, Australia, New Zealand), will require similar audits and controls.Normally you will see a statement similar to the one I posted below. It was taken from Kohl’s Stores most recent 10-Kkss-10k_20180203.htmReport of Independent Registered Public Accounting FirmTo the Shareholders and the Board of Directors of Kohl’s CorporationOpinion on Internal Control over Financial ReportingWe have audited Kohl’s Corporation’s internal control over financial reporting as of February 3, 2018, based on criteria established inInternal Control—Integrated Frameworkissued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (the COSO criteria). In our opinion, Kohl’s Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of February 3, 2018, based on the COSO criteria.We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of February 3, 2018 and January 28, 2017, and the related consolidated statements of income, changes in shareholders’ equity and cash flows for each of the three years in the period ended February 3, 2018, and the related notes and our report dated March 23, 2018, expressed an unqualified opinion thereon.Basis for OpinionThe Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.Definition and Limitations of Internal Control Over Financial ReportingA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate./s/ Ernst & Young LLPMilwaukee, WisconsinMarch 23, 2018While the other quarterly filings (10-Q reports) are not audited by an independent accountant, there is an internal corporate auditing committee that will review all of the accounting practices and note any changes made by the Company during that period of time.Management verifies its financial controls, and these issues must be signed off by the CEO and CFO as seen below:kss-10q_20181103.htmCritical Accounting Policies and EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect reported amounts. Management has discussed the development, selection and disclosure of its estimates and assumptions with the Audit Committee of our Board of Directors. There have been no significant changes in the critical accounting policies and estimates discussed in our 2017 Form 10-K.Item 3. Quantitative and Qualitative Disclosures About Market RiskThere have been no significant changes in the market risks described in our 2017 Form 10-K.Item 4. Controls and ProceduresEvaluation of Disclosure Controls and ProceduresUnder the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (the “Evaluation”) at a reasonable assurance level as of the last day of the period covered by this report.Based upon the Evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are effective at the reasonable assurance level. Disclosure controls and procedures are defined by Rule 13a-15(e) of the Securities Exchange Act of 1934 (the "Exchange Act") as controls and other procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.It should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving our stated goals under all potential future conditions, regardless of how remote.Changes in Internal Control Over Financial ReportingThere were no changes in our internal control over financial reporting during the quarter ended November 3, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Thanks for the A2A. There are various means to gain a broad understanding of Cybersecurity in a month, including training courses, mentorship by a cybersecurity expert, and self-study.To ensure comprehensive breadth of coverage, I recommend you learn a vendor-neutral Cybersecurity Framework, such as provided by U.S. National Institute of Standards and Technology (NIST).IDENTIFYAsset Management: The data, personnel, devices, systems, and facilities that enable the organization to achieve business purposes are identified and managed consistent with their relative importance to organizational objectives and the organization’s risk strategy.Business Environment: The organization’s mission, objectives, stakeholders, and activities are understood and prioritized; this information is used to inform cybersecurity roles, responsibilities, and risk management decisions.Governance: The policies, procedures, and processes to manage and monitor the organization’s regulatory, legal, risk, environmental, and operational requirements are understood and inform the management of cybersecurity risk.Risk Assessment: The organization understands the cybersecurity risk to organizational operations (including mission, functions, image, or reputation), organizational assets, and individuals.Risk Management Strategy: The organization’s priorities, constraints, risk tolerances, and assumptions are established and used to support operational risk decisions.Supply Chain Risk Management: The organization’s priorities, constraints, risk tolerances, and assumptions are established and used to support risk decisions associated with managing supply chain risk. The organization has established and implemented the processes to identify, assess and manage supply chain risks.PROTECTIdentity Management, Authentication and Access Control: Access to physical and logical assets and associated facilities is limited to authorized users, processes, and devices, and is managed consistent with the assessed risk of unauthorized access to authorized activities and transactions.Awareness and Training: The organization’s personnel and partners are provided cybersecurity awareness education and are trained to perform their cybersecurity-related duties and responsibilities consistent with related policies, procedures, and agreements.Data Security: Information and records (data) are managed consistent with the organization’s risk strategy to protect the confidentiality, integrity, and availability of information.Information Protection Processes and Procedures: Security policies (that address purpose, scope, roles, responsibilities, management commitment, and coordination among organizational entities), processes, and procedures are maintained and used to manage protection of information systems and assets.Maintenance: Maintenance and repairs of industrial control and information system components are performed consistent with policies and procedures.Protective Technology: Technical security solutions are managed to ensure the security and resilience of systems and assets, consistent with related policies, procedures, and agreements.Anomalies and Events: Anomalous activity is detected and the potential impact of events is understood.Security Continuous Monitoring: The information system and assets are monitored to identify cybersecurity events and verify the effectiveness of protective measures.Detection Processes: Detection processes and procedures are maintained and tested to ensure awareness of anomalous events.RESPONDResponse Planning: Response processes and procedures are executed and maintained, to ensure response to detected cybersecurity incidents.Communications: Response activities are coordinated with internal and external stakeholders (e.g. external support from law enforcement agencies).Analysis: Analysis is conducted to ensure effective response and support recovery activities.Mitigation: Activities are performed to prevent expansion of an event, mitigate its effects, and resolve the incident.Improvements: Organizational response activities are improved by incorporating lessons learned from current and previous detection/response activities.RECOVERRecovery Planning: Recovery processes and procedures are executed and maintained to ensure restoration of systems or assets affected by cybersecurity incidents.Improvements: Recovery planning and processes are improved by incorporating lessons learned into future activities.Communications: Restoration activities are coordinated with internal and external parties (e.g. coordinating centers, Internet Service Providers, owners of attacking systems, victims, other CSIRTs, and vendors).The twenty-three bulleted categories grouped under headings of four cybersecurity functions may be studied with one category per weekday for May 2019, proving that the scope of cybersecurity can be learned in a month.

Main Determinants of Integrated Cyber Security Risk ManagementICSRM:An Integrated Cyber Security Risk Management approach for a Cyber-Physical System. A cyber-physical system (CPS) is a combination of physical system components with cyber capabilities that have a very tight inter-connectivity. CPS is a widely used technology in many applications, including electric power systems, communications, and transportation, and healthcare systems. Enterprise risk management (ERM) has captured the attention of risk management professionals and academics worldwide. Unlike the traditional “silo-based” approach to corporate risk management, ERM enables firms to benefit from an integrated approach to managing risk that shifts the focus of the risk management function from primarily defensive to increasingly offensive and strategic.RISK MANAGEMENT:The management of any organization, whether working in the public sector, whether working in the private sector, aims in order to achieve its objectives to monitor and reduce risks. Risk control is achieved by managing them effectively, namely by implementing an adequate risk management system.Risk management is an important concept related to safety and financial integrity of an organization, and risk assessment is an important part of its strategic development.The strategy of an organization on risk management should be that all the risks it faces must be identified, assessed, monitored and managed so that they are maintained in a certain limit, accepted by the entity’s management.INTEGRATED APPROACH TO RISK:Integrated risk management process is designed and set by the management and implemented by the whole staff within the organization. This process is not linear, a risk management may have impact also on other risks, and control devices identified as being effective in limiting a risk and keeping it within acceptable limits, may prove beneficial in controlling other risks.(I)COSO and integrated risk management(ii)Risk management and internal control(iii)components (Control environment,Risk assessment,Control activities,Information and communication,Monitoring.Risk profilingBest practices we identified include the development and maintenance, with direct senior management involvement, of the departmental risk profile as one of the key strategic risk documents.The departmental risk profileidentifies the risks most likely to affect the department's achievement of objectives,prioritizes risks so management's attention focusses on the most significant areas, andconsiders the adequacy of management controls surrounding the identified risks.Action plans—Best practicesEstablish a strategic integrated risk management process that integrates the department's mission, strategic objectives, operating unit plans, and day-to-day activities.Identify and assess risks associated with the department's activities.Do an environmental scan to identify key internal and external risks associated with the department's activities.Use workshops with senior management to identify corporate risks.Select integrated risk management strategies.Align the initiative with other management initiatives and priorities.Establish intended results and outcomes of the initiative.Develop a database that includes identified risks, risk mitigation plans, and departmental risk profiles.Implement an integrated risk management action plan.Appoint and train co-ordinators to oversee implementation.Identify individuals who are responsible for elements of the work plan.Determine the nature and extent of resources required.Report on integrated risk management and controls.Report progress on implementing the initiative and explain any variances.Monitor integrated risk management performance.Monitor progress and make any changes needed to mitigate problems or risks as they emerge.Revise and update strategy as needed.Monitoring and evaluationExamples of best practices:Internal audits include assessments of the adequacy of monitoring and reporting on the use of integrated risk management.All levels of management monitor continuously, through both formal and informal mechanisms, the effectiveness of the integrated risk management initiative and the use of risk information.The department monitors progress in implementing the integrated risk management initiative against an established work plan and obtains explanations for any departures from agreed-upon timelines and resource requirements.Simple Conclusion:ERM adoption among firms are gradually increased at a rate of 3–7% per year. at the same time they have higher cost of financial distress. Meanwhile highly leveraged firms should disclose their risk exposure comprehensively in their financial reports in order to reveal their commitment to the ERM community to globally synchronize the data.