Financial Compliance and Risk Management
In channel-based environments, risk comes in many forms. One major area that always must be governed is compliance with financial and regulatory mandates. As more companies move from traditional, sell-in models of revenue recognition to sell-through models in conjunction with channel partners, the risks of noncompliance are escalating.
Cover all of your bases
The Sarbanes-Oxley (SOX) Act and other compliance initiatives require a substantial investment of time and money for companies to make sure that their channel-based operations conform to mandates and reduce risk exposure.
With an increasingly large percentage of the data and processes that support compliance now residing with channel partners, companies have higher risk exposure due to discontinuities in the audit trails and evidence to support all of their financial actions.
Relying on manual tracking such as offline spreadsheets, email trails, faxes and paper documentation is not only inefficient, but also a recipe for noncompliance and potential sanctions.