Siemens Financial Services Inc. achieves continuous assurance with Diligent
Siemens Financial Services Inc. (SFS, Inc.), the financing arm of Siemens, has successfully embraced a transformative approach to control monitoring through the implementation of Diligent’s innovative solutions. By leveraging Diligent’s tools, SFS, Inc. has achieved continuous assurance across its operations, significantly enhancing its financial control framework and driving efficiency in compliance processes.
The collaboration between SFS, Inc. and Diligent illustrates how the integration of digital solutions can address critical challenges in regulatory compliance, particularly in the context of internal controls over financial reporting (ICFR).
Addressing key challenges with continuous control monitoring
Within the financial services industry, SFS, Inc. faced the mounting challenge of tightening European regulations, necessitating a shift from traditional, manual control processes to more efficient, automated systems.
The organization's operations, spread across 14 countries, were hindered by repetitive manual control activities, leading to inefficiencies and a higher risk of errors. As the business continued to expand, these manual processes proved increasingly unsustainable, highlighting the urgent need for a robust solution.
Diligent’s continuous control monitoring (CCM) emerged as an integral piece of SFS, Inc.’s strategy to mitigate these issues. By transitioning to an automated control framework, SFS, Inc. was able to streamline operations, reduce the burden of manual tasks and enhance overall control effectiveness. The move to CCM was driven by the necessity to replace labor-intensive manual processes with technology, thus aligning with the company’s broader digital transformation goals.
The automation provided by Diligent not only addressed the inefficiencies inherent in manual controls but also allowed SFS, Inc. to handle increased business complexities and portfolio growth more effectively. This transition facilitated a shift in focus from time-consuming, repetitive tasks to more strategic activities, maximizing the use of limited resources both qualitatively and quantitatively.
Additionally, the positive feedback from external auditors reinforced the value of this transformation, validating the shift towards continuous monitoring to maintain rigorous compliance standards.
The impact of introducing ACL Analytics on ICFR controls
Diligent’s advanced solutions have profoundly enhanced the Internal Controls over Financial Reporting (ICFR) at Siemens Financial Services Inc. One of the standout features of Diligent’s approach is its capacity to evaluate the entirety of transactional data, moving beyond the limitations of traditional sampling techniques. This comprehensive scrutiny ensures a more rigorous and accurate assessment of control effectiveness, significantly mitigating the risk of undetected errors or inconsistencies.
The introduction of Diligent’s automated tools has led to a remarkable 90% reduction in the time needed for ICFR testing. This substantial time saving allows SFS, Inc. to reallocate resources more strategically, enhancing the efficiency and focus of their compliance efforts. The shift from manual to automated testing processes means that SFS, Inc. can now conduct thorough, real-time reviews, which bolster the reliability and integrity of their financial reporting mechanisms.
In addition to time efficiencies, the implementation of Diligent’s solutions has also resulted in a 50% reduction in the occurrence of exceptions. The decrease not only signifies improved compliance but also underscores the robustness of SFS, Inc.'s financial controls.
Achieving early efficiency gains through digital transformation
The digital transformation at Siemens Financial Services Inc. has catalyzed notable early efficiency gains, with the help of ACL Analytics from Diligent. By digitizing control processes, SFS, Inc. has enhanced its compliance framework and significantly improved its operational agility. The shift to automated systems has enabled the company to streamline previously cumbersome manual tasks, thereby allowing staff to focus on more strategic initiatives that drive business growth and competitiveness.
The Diligent One Platform helps SFS, Inc. effectively monitor and manage data quality and user access across multiple applications, ensuring robust oversight and compliance. This integration facilitates real-time issue identification and resolution, contributing to a more proactive and responsive control environment. Furthermore, the platform’s advanced analytics capabilities provide valuable insights, enabling informed decision-making and better risk management practices.
The transformation has not only reduced the time and resources required for compliance activities but has also fostered a culture of transparency and accountability within the organization. As SFS, Inc. continues to navigate the complexities of the financial services industry, the efficiencies gained from this digital transformation position the company to adapt swiftly to changing regulatory landscapes and market conditions, ensuring sustained growth and competitive advantage.
