Digital technologies and finance function Flashcards
How does cloud computing affect finance function?
- Allow flexible working
- Allowing collaboration
- Keeping software continuously up-to-date
- Improving integration of software
- Improving data security as cloud provides better understand how to protect data
What are the advantages of Process Automation?
- Frees staff time up to focus on value adding activities
- Headcount can be reduced as work is automated, helps to reduce costs
- Removal of human error will improve accuracy of information
- Can be used as catalyst to help organisation adapt and improve in response to change
- Well developed and implemented systems will have a positive return on investment
What are the disadvantages of Process Automation?
- Training costs can be significant
- Introducing system involves change which must be managed carefully and thoughtfully
- Systems may create uncertainty over job security and future prospects in staff.
- Systems are only as effective as the person who creates them. Programmer must be competent.
- Finance function’s relationship with IT needs to be maintained.
What are the uses of Budgets (CRUMPET) ?
- Co-ordination- help managers organise departments.
- Responsibility - Gives managers authority
- Utilisation - better visibility over efficient deployment of resources that they are responsible for.
- Motivation- targets to reach
- Planning -
- Evaluation- helpful point of reference
- Telling- useful communication tool
What does a treasurer do?
They are responsible for raising finance and controlling financial resources.
What are a treasurer’s 5 key roles?
- Working capital maintenance
- Financing
- Foreign currency management
- Taxation
- Cash management
What are the roles that are under remit of an internal audit?
- Reviewing internal controls, risk management issues
- Managing the data used by management to identify risks
- Identifying methods for prioritising and managing risks
- Reporting on how effectiveness of risk management controls
- Prevention and detection of fraud and intentional misstatements
What are the five moral dimensions of the information age?
- Information rights and obligations
- Property rights
- Accountability and control
- System quality
- Quality of life.
What are the six principles according to the Data Protection Act 2018?
- Lawfulness, fairness, transparency
- Purpose limitation- individuals must be made aware of purpose of data
- Data minimisation- held must be adequate
- Accuracy- held must be accurate and not misleading
- Storage limitation- not be held for longer than is needed
- Integrity and confidentiality (security) - appropriate security measures regarding risks that might arise in connection with data must be taken
What are the 8 rights of individuals according to the Data Protection Act 2018?
- To be informed
- Access
- Rectification
- Erasure
- Restrict processing
- Data portability
- To object
- Automated decision making and profiling
What are the five areas of developing a Corporate Digital Responsibility Strategy?
- Digital stewardship
- Customer expectations
- Giving back
- Data value - reward customers for providing data
- Data inclusion- everyone should have access to digital world
What are some ways that AI can support the finance function?
-Simple processes can be automated
- Improved fraud detection as systems can better understand ‘normal’ and ‘abnormal’ transactions
- Predictive models can help forecast costs and revenues
- Enables improved analysis of unstructured data in contacts and emails.
What are 5 qualities needed to develop a Digital Mindset?
1.) Clear vision of how business should evolve and supporting actions to get there by empowering others.
2.) Giving up controlling the change but árchitect’ the choices of getting there.
3.) Sustain and enhance existing business processes but to allow and nurture new processes to disrupt status quo.
4.) Place reliance on data but trust personal instinct
5.) Be both sceptical and open-minded
