Supervisory Reporting - Controls and Validations

1. What is Supervisory Reporting - Controls and Validations

"Controls and Validations" is an integral part for Financial Accounting and Regulatory Reporting process. It is a process that confirms the consistency on the reported metrics across businesses and domains within a firm. It is undeniable that processing financial figures in any firm is complex; and with fast growing businesses and technology surrounding us the need of consistency and accuracy is constantly enlarging.

It is a process that enables various departments and senior leadership members of the firm to view their reports, financial indicators and level of consistencies amongst them much ahead of reporting timescales before they are disclosed externally. And hence helping the business to review and challenge the outcomes.

"Controls and Validations" are of different nature such as Internal Validations, External Validations, Cross Validations, etc. with each having its own purpose and value add to the results.

2. Who does it apply to?

"Controls and Validations" apply to any business or firm with an obligation to produce and submit financials and regulatory reporting to the external stakeholders such as Regulators, Investors, Market participants, etc.

3. Why is it important?

Even though "Controls and Validations" are always adopted at certain level within every firm, in past few years it has become more important and critical to have a robust reporting controls and validations process to respond to the demands from the local and international regulators. This not only helps business to improve on their internal controls but also helps keep the compliance costs in command.

4. How does it impact the business and industry?

It wouldn't be wrong to say that additional demand on "Controls and Validations" from the regulatory bodies and industry has added further complexity to the overall reporting cycles. And so has also increased the costs of technology and people. However the long term impact of adopting ever growing controls has much larger positive impacts on businesses and industry. With many others, it is a salient steps to curb the likelihood of future financial crisis.

These controls are not just to ensure that the reported metrics are consistent; through the economic chain cycle they feed finally into the accuracy of the fiscal indicators too. 

In summary different market participants understand and appreciate the benefits that these processes deliver. 

5. How can we help?

Whilst it is crucial to meet compliance, the cost of compliance is largely similar for most of the firms. So the Controls and Validations may just be a fraction of overall cost of compliance for the large firms, it is disproportionally high for smaller firms. Titan has pioneered the technology through the power of Artificial Intelligence (AI) and Machine Learning (ML) that can help businesses achieve the similar or better controls on their reporting with much lower costs and time. We are extremely proud on how seamlessly our technology can keep updated to the market enabling you always ahead of the competitors.