New self-evaluation tool
Companies can now work with the online platform "SME Benchmark". This enables companies to check and evaluate their financial management and control measures themselves and to compare their own evaluations with those of other SMEs. The platform also offers tools to make financial management more effective.
Since the 2012 revision of company law, many SMEs in Switzerland are no longer formally required to maintain an internal control system (ICS). For this reason, the Institute of Financial Services Zug (IFZ) at the Lucerne University of Applied Sciences and Arts launched a project two years ago to promote self-monitoring by SMEs as part of good corporate governance. Together with the business software provider Sage and other practical partners, the project team developed the online platform "SME Benchmark". It enables companies to evaluate on their own the measures they use to manage and control their operations. The project was financially supported by the Federal Commission for Technology and Innovation (CTI).
Cushion risks
On the platform, the companies are asked, among other things, whether backup copies of the data are created, a signature regulation exists and is controlled, access protection to personnel and salary data exists, IT support is guaranteed at all times, processes are documented and deputies are defined. "The goal is for SMEs to gain more transparency regarding their financial management and control and to be able to elicit weaknesses and risks," says controlling expert and project manager Stefan Renggli of the Lucerne University of Applied Sciences and Arts. At the same time, the "SME benchmark" makes it possible to compare one's own evaluation with those of other SMEs of similar size and in the same industry.
If gaps in self-monitoring are uncovered, the companies receive recommendations on how they can improve their corporate governance. Specific fact sheets and checklists are also available to them for this purpose. The analysis on the platform can be repeated as often as desired so that SMEs can monitor their own progress. "The new platform is a unique evaluation tool in Switzerland. It allows SMEs to mitigate risks in order to run their business even more securely and sustainably," says Marc Ziegler, Country Manager at Sage Switzerland.
Best practice model as a basis
The "SME Benchmark" platform is based on a best-practice model that the Lucerne University of Applied Sciences and Arts developed as part of the research project. For this purpose, the team analyzed at the companies involved in the project which instruments are used to organize financial management and by which factors this is influenced. In addition, management, business and support processes were analyzed in relation to existing controls and risk management.
"Based on these findings, we were able to define what elements an internal control system should contain so that an SME can manage and control its financial area cost-effectively and effectively," says Stefan Renggli.
The "SME Benchmark" platform is available to all SMEs free of charge: www.kmu-benchmark.ch
