A valuable tool that’s poorly managed
Despite this, and paradoxically, the use of spreadsheets for business-critical processes is expected to grow over the next two years according to auditors (nearly 60%), regulators (40%) and risk and compliance professionals (nearly 45%). Clearly, spreadsheets are a valuable tool for certain processes and tasks. They do the job, where perhaps corporate financial systems, which are the preferred option for operational processes, fall short of meeting user requirements. Spreadsheets are extensively used in financial environments for complex calculations and modelling. At the same time, spreadsheets are one of the key contributors of financial, regulatory, operational and reputational risk.
There is no merit in running a business using uncontrolled spreadsheet applications. These tools warrant the same level of scrutiny and management as that accorded to corporate financial systems. By automating the management of the financial and compliance processes in the spreadsheet environment, organizations reduce the risk of losses, compliance-related penalties and long-term reputational damage. Importantly, organizations optimize their efficiency and productivity gains and thereby make tangible financial savings as a result of reduced manual effort.