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Annual Policy Reviews | CFO Lounge

Annual Policy Reviews

Thu, Sep 25, 2008

Down to Business

CFOs direct policy creation for a number of reasons but generally policies are written to guide behavior and to provide for consequences if that behavior is deemed illegal or harms the company’s assets in any way.

A heap of thought, consensus and effort go into a writing a policy. However, I think it is good policy that policies are not written in stone and that smart CFOs, controllers and executive management come together annually to discuss key policies and whether they still make sense in light of current economic, financial and operating conditions.

So, CFOs, schedule a recurring meeting once a year to review key policies with executive and financial management. Focus on whether your materiality levels still make sense and whether you can dispense with some of the red-tape. Ask yourself if you’ve run into operational issues because there was a lack of oversight - maybe you have a policy that needs to be tightened up.

Anyway, my point is, don’t enforce a set of policies that are outdated. They may cause you more harm than good.

This post was written by:

Chad Cohen - who has written 51 posts on CFO Lounge.

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