Implementation of a corporate compliance plan to deal with the corporate governance issues for Riordan is the best opportunity for Riordan Manufacturing, Inc. to assess and analyze its internal control system. This process includes defining and implementing compliance steps and processes. Recommendations will include preventative solutions that incorporate risk mitigation. Additionally, Riordan will use a problem solving approach to determine which solutions to implement into the compliance effort.
The company will begin to implement enterprise risk management by developing an appropriate internal control and corporate governance system. Enterprise risk management (ERM) is an important discipline that is gaining popularity and recognition both as a best practice and as just good management. More often risk executives in related roles are getting involved or are being assigned the challenging task to implement ERM. (Fraser, 2008).
For a company to ensure complete corporate compliance, it is imperative that there is a developed internal control and corporate governance system.
To develop such a system, strategic planning and development are required. This strategic planning includes developing preventive, detective, and corrective controls to cover the various aspects of corporate compliance.
Principles addressing global tax operations for corporate tax governance are evolving and require an understanding of the Treadway Commission (COSO) in the US and section 404 of the Sarbanes-Oxley requirements as well as the Turnbull in the UK and compliance to section C-2 of the Combined Code for corporate governance (Jennings, 2006, A-37). Providing a practical approach to effective corporate tax governance requires a basic understanding of the corporate income tax process and the corporate infrastructure required to manage and report the company's global income taxes (Ferrera, 2004). Through the building of a compliant enterprise, institutions can transform the cost of compliance into an investment. Technologies that automate, standardize, control, and optimize business...