General Insurance Article - Spreadsheet risk management within UK organisations


NEW RESEARCH POINTS TO SYSTEMIC FAILURE OF SPREADSHEET RISK MANAGEMENT WITHIN UK ORGANISATIONS

     
  •   72% said that no department checks their spreadsheet
  •  
  •   56.5% have not received formal spreadsheet training 

  

 A new survey* from ClusterSeven, an international provider of strategic spreadsheet and data management software, shows that 56.5% of spreadsheet users have never received formal training on the spreadsheet package they use. Worryingly, 47% have never even been offered spreadsheet training.

 Of those surveyed by ClusterSeven, 72% admitted that no internal department checks their spreadsheets for accuracy. Only 12.9% said that Internal Audit reviews their spreadsheets, while a mere 1.1% receive checks from their risk department.

 Spreadsheets enable organisations to quickly and flexibly perform analysis that would otherwise be difficult or time consuming, says ClusterSeven.  As a result, businesses tend to place undue trust in the integrity of the analysis captured in their spreadsheets.

 Ralph Baxter, CEO of ClusterSeven, said: “This research is a clear indication that organisations are systemically failing to properly control the way in which spreadsheets are being used and managed.  Over the last number of years, high profile cases have brought spreadsheet usage to the forefront of organisations risk management procedures, but unfortunately governance has yet to catch up.. Organisations need to understand the risks they now face, and not when a serious financial error has arisen.”

 Further research by ClusterSeven has shown that 47.2% of users made between one and four errors on their spreadsheets, while 11.6% made between five and 10 errors. Shockingly 6.6% made more than 11 errors following the construction of their spreadsheets.

 Ralph Baxter continued: “It is clear that the prospects for serious errors occurring within spreadsheets are very likely, with over 65% of interviewees admitting to making mistakes. This is extremely worrying considering that organisations rely on carrying out business critical data processes using this tool, which some cases involve millions of pounds in transactions.

 “Currently no department is charged with reviewing and securing spreadsheets, leaving this process entirely in the hands of the end-user. As our research has shown, this needs to change, with one department charged with maintaining policy for the review and security of all business critical spreadsheet usage. This can be carried out cheaply and effectively with the tools readily available, coupled with user training and individual risk assessment of spreadsheets.”

Back to Index


Similar News to this Story

The Floow chosen to advise on road safety UPLIFT project
The Floowhave announced it has been appointed by Innovate UK on behalf of The Government’s Industrial Strategy Challenge Fund to advise on its new UPL
Aon releases 2019 Cyber Security Risk Report
Aon has released its 2019 Cyber Security Risk Report. The report, which details the greatest cyber security threats and challenges organizations are c
Winter storms and extreme cold lead to billion dollar damage
Aon launches its Global Catastrophe Recap – January 2019. This evaluates the impact of global natural disaster events to identify trends, manage volat

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.