Aligning Internal Controls with Strategic Goals

Challenge:

A financial services client was grappling with uncertainty around their governance frameworks and struggled to align internal controls with their strategic objectives. This misalignment created significant risks, including potential regulatory action, compliance breaches, and negative impacts on overall business performance.

Key Challenges:

• Governance Framework Gaps: The existing governance structures lacked clarity and effectiveness, making it difficult for the client to monitor and control risk properly.
• Control Weaknesses: Internal controls were fragmented and inconsistently applied, which reduced management’s ability to ensure compliance and operational efficiency.
• Regulatory Pressure: The client operated under stringent regulatory requirements, demanding timely compliance and accurate reporting within tight deadlines.
• Strategic Misalignment: Weak governance and controls hindered the alignment between operational processes and strategic goals, affecting decision-making and performance outcomes.

Solution:
 

Baker Tilly conducted a thorough, risk-focused review of the client’s governance frameworks and internal control environment. Our specialists partnered closely with the client to:

1. Identify specific control gaps and governance deficiencies impacting compliance and operational effectiveness.
2. Evaluate the current governance structures’ design and operational effectiveness against best practices and regulatory standards.
3. Develop and deliver tailored, actionable recommendations to strengthen internal controls, enhance governance frameworks, and improve alignment with strategic objectives.
4. Support the client through implementation planning to ensure sustainable remediation and process improvements.

Findings & Outcomes:

• Significant weaknesses were identified in oversight mechanisms and control documentation, which were rectified with clear, practical controls and governance enhancements.
• Improved governance clarity empowered management to better oversee compliance risks and business performance.
• Strengthened internal controls reduced operational vulnerabilities and enhanced data reliability for decision-making and reporting.
• The client successfully met regulatory expectations on governance and control frameworks within required timelines.

Value Addition Beyond the Review:

• We provided strategic insights on embedding governance into daily operations to sustain long-term risk management.
• Delivered training and awareness sessions to the client’s leadership to reinforce governance culture and accountability.

Conclusion:

Baker Tilly’s comprehensive governance and internal control review enabled the client to achieve greater assurance over their frameworks, meet regulatory demands confidently, and align their operational controls with strategic business objectives. This collaboration not only mitigated compliance risks but also strengthened overall organizational resilience and performance.