{"id":3161,"date":"2020-09-26T05:00:44","date_gmt":"2020-09-26T09:00:44","guid":{"rendered":"http:\/\/community.mis.temple.edu\/itacs5121fall16\/?p=3161"},"modified":"2018-12-07T12:12:07","modified_gmt":"2018-12-07T17:12:07","slug":"week-4-wrap-up-otc-process-types-of-controls","status":"publish","type":"post","link":"https:\/\/community.mis.temple.edu\/mis5121sec701fall2019\/2020\/09\/26\/week-4-wrap-up-otc-process-types-of-controls\/","title":{"rendered":"Week 4 Wrap-up: OTC Process, Types of Controls"},"content":{"rendered":"<p>I apologize for the incomplete post earlier \u2013 it\u2019s been quite a week personally. \u00a0Good comments and discussion last week. You raised the key points but let me share my thoughts.<\/p>\n<p><strong>Q1<\/strong>: Who has a \u2018great\u2019 OTC process \u2013 as expected you shared several company\u2019s excellent OTC process that you\u2019ve experienced.\u00a0 However, most were in the consumer market.\u00a0 There are many companies in Business to Business (B2B) markets as well who have excellent OTC process.<\/p>\n<p><strong>Q2<\/strong>: Which portions of OTC process are most vulnerable \u2013 You shared some good examples and reasons.\u00a0 There are vulnerabilities in every portion of the OTC process.\u00a0 I believe however that the highest risks exist where the highest values are involved.\u00a0 That may be the shipping portions of the process for example if you\u2019re shipping high value materials (e.g. precious metals).\u00a0 More frequently these risks exist in the portions of the process dealing with pricing, invoicing and cash collections.\u00a0 It\u2019s always important to understand the business and the details of the business process when analyzing risks.<\/p>\n<p><strong>Q3<\/strong>: Who should \u2018own\u2019 OTC Process controls \u2013 I firmly believe that an executive or senior level manager should be the \u2018owner\u2019 (person ultimately responsible) for the process.\u00a0 That person may not know the details of the process, risks and controls.\u00a0 However, they need to manage the people who do understand the details and have enough experience or knowledge to truly be responsible for the control structure and culture. \u00a0The CIO or CFO aren\u2019t in my view aren\u2019t best owners for the OTC process (see next comment).\u00a0 Ask me sometime to share with you my experience of being this \u2018owner\u2019 for a fairly large company without the position and clout of being an executive or senior manager.<\/p>\n<p><strong>Q4<\/strong>: Competencies of OTC Process Owner \u2013 You mentioned some good examples in your answers.\u00a0 In my opinion the key competencies are:<\/p>\n<ul>\n<li>Focus on the Customer \u2013 the customer needs to be <strong>the<\/strong> key focus of the process. The process must exist to help \/ support create value for the customer which in turn brings value to the organization.<\/li>\n<li>Basic understanding of the process, it\u2019s key risks and controls. In my opinion it\u2019s difficult to manage something you have no basic knowledge of.<\/li>\n<li>Ability to lead and desire to recognize and make critical decisions (often with limited or conflicting information).<\/li>\n<\/ul>\n<p><strong>Extra Post<\/strong>: Well\u2019s Fargo Fraud \u2013 I agree with the sense of frustration and outrage many of you shared.\u00a0 If I were on the board, I\u2019d be calling for the CEO\u2019s resignation.\u00a0 However, I had an interesting conversation with a person who worked in the banking industry this week who shared how the extent of the fraud could have remained under the radar of senior management.\u00a0 If you\u2019re interested, ask me in class to share what I learned.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I apologize for the incomplete post earlier \u2013 it\u2019s been quite a week personally. \u00a0Good comments and discussion last week. You raised the key points but let me share my thoughts. Q1: Who has a \u2018great\u2019 OTC process \u2013 as expected you shared several company\u2019s excellent OTC process that you\u2019ve experienced.\u00a0 However, most were in [&hellip;]<\/p>\n","protected":false},"author":22812,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[715345],"tags":[],"class_list":{"0":"post-3161","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-week-04-enterprise-architecture","7":"entry"},"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/community.mis.temple.edu\/mis5121sec701fall2019\/wp-json\/wp\/v2\/posts\/3161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/community.mis.temple.edu\/mis5121sec701fall2019\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/community.mis.temple.edu\/mis5121sec701fall2019\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/community.mis.temple.edu\/mis5121sec701fall2019\/wp-json\/wp\/v2\/users\/22812"}],"replies":[{"embeddable":true,"href":"https:\/\/community.mis.temple.edu\/mis5121sec701fall2019\/wp-json\/wp\/v2\/comments?post=3161"}],"version-history":[{"count":1,"href":"https:\/\/community.mis.temple.edu\/mis5121sec701fall2019\/wp-json\/wp\/v2\/posts\/3161\/revisions"}],"predecessor-version":[{"id":4929,"href":"https:\/\/community.mis.temple.edu\/mis5121sec701fall2019\/wp-json\/wp\/v2\/posts\/3161\/revisions\/4929"}],"wp:attachment":[{"href":"https:\/\/community.mis.temple.edu\/mis5121sec701fall2019\/wp-json\/wp\/v2\/media?parent=3161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/community.mis.temple.edu\/mis5121sec701fall2019\/wp-json\/wp\/v2\/categories?post=3161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/community.mis.temple.edu\/mis5121sec701fall2019\/wp-json\/wp\/v2\/tags?post=3161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}