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News and discussion on implementing risk management

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Ensure secure disposal of hardware

Organizations often make the mistake of considering the disposal of hardware only when they are ready to discard equipment, if at all. Instead, they should plan for hardware disposal throughout the entire systems development lifecycle, from acquisition and testing through to operations.

 

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Revenue cycle risks and controls: Essential questions you should ask about your company’s sales and receivables

The importance of finance and accounting controls goes far beyond complying with legal requirements. In fact, revenue cycle controls are perhaps the most important component of an organization’s overall internal control framework! Not only are revenue cycle controls an organization’s strongest defense against fraud and loss, they help ensure that decisions are made based on […]

 

Understanding the challenges in risk management

My good friend, Michael Rasmussen, has written what I consider a special blog post on the topic of Challenges in Risk Management.

 

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Beyond due diligence: Ongoing third party risk management

There is something in a name. More people in the compliance industry, when referring to third-party due diligence, are labeling it “Third Party Risk Management.” I like it because it is more accurate.

 

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Hot off the press: Heintzman and Goldsmith on Canadian Building Contracts

With top-tier knowledge of Canada’s construction industry and legislation, Calgary Partner Bryan West has joined Thomas G. Heintzman as a co-author of the most recent edition of Heintzman and Goldsmith on Canadian Building Contracts.

 

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Internal audit needs to perform in a way that matters to the board and top management

Internal audit can help leaders with assurance that their people, systems, and processes are able to deliver the desired results – and advice and insight on how to improve them further.

 

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Confronting cultures of harassment: Class actions on the rise in the wake of #MeToo?

From Just For Laughs, to WestJet, to the RCMP, these burgeoning cases underscore that, in the #MeToo world, employers, corporations and executives are facing increased risk where permissive cultures and weak governance structures may have enabled instances of harassment.

 

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Collective agreement, not software, drives employee entitlements

Organizations must carefully and proactively determine user requirements and document them with great specificity when designing or evaluating software options to manage payroll and benefits within their companies.

 

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Conference update: Virtual currency exchanges, beneficial ownership and other developments in Canadian anti-money laundering regulations

anti-money laundering

On February 7, 2018, the Canadian federal government had released a consultation paper for comments that has potentially far-reaching implications for compliance with Canadian anti-money laundering (AML) requirements. At the recently concluded 17th Annual Forum on Anti-Money Laundering & Financial Crime in Toronto, some interesting observations were made by various speakers (including representatives from certain Canadian regulators). A number of these observations touched on topics covered by the above-mentioned consultation paper. This article sets out some key highlights.

 

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Improve internal controls over fixed assets (Part 2)

A failure to satisfy proper cut-off, completeness, existence, accuracy and ownership are common problems arising from weak or non-existent fixed asset policies. The overarching approach to satisfying these issues is to design and implement internal controls in proper policies and procedures.

 

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Drafting interest rate calculation provisions in corporate finance transactions

If a loan document does not comply with the provision for calculating a “nominal” annual rate of interest in order to comply with section 4 of the Interest Act, then the interest rate is capped at 5% per annum. Commercial practice and appellate jurisprudence had confirmed that such provisions complied with section 4. Section 4 states:

 

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Employee forfeits $115,000.00 in bonuses by resigning; active employment clause valid

A bonus policy may state that employees who are eligible for bonuses must also be actively employed to receive their bonus payments. That is, employers may institute an “active employment clause”. Courts will uphold valid active employment clauses, as demonstrated by Bois v. MD Physician Services Inc., 2017 ONCA 857 (CanLII). MD Physician Services Inc. […]

 

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Mitigate the risks associated with IT systems acquisition

Any organization which acquires IT systems must do so carefully. Among other reasons, systems may be costly, they may be critical to business operations, and they may create significant risks (for example a risk of security breaches). The following suggestions will help to mitigate some of the risks associated with IT systems acquisition:

 

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Three cybersecurity trends driving the Bank of Canada’s call for cybersecurity to be treated as a ‘public good’

As the level and sophistication of cyber-attacks continue to grow, there will be a mounting pressure on regulators to continue to develop coordinated, meaningful, mandatory minimum standards that are enforceable against all financial institutions and FMIs as well as their service providers.

 

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Major changes to Canada’s export and technology transfer controls coming into force shortly

The Government of Canada has announced that a new version of the Guide to Canada’s Export Controls (the “Guide”) will come into effect on August 11, 2017. The Guide lists the goods and technology subject to export and technology transfer controls.

 

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