Managing the Risk of Regulatory Compliance

June 07, 2016 at 11:44 AM

� Carmakers and their suppliers are accustomed to the strict and well-defined rules of financial reporting. But now the industry faces a very different but no less important issue: a regulatory focus on non-GAAP measures, such as fuel economy and emissions compliance.

Meeting this challenge demands a less traditionally structured and more holistic response, says Stephane Lagut, EY’s Global Automotive Assurance Leader. But he notes that few companies have applied the management tools they need for effective results.

Lagut notes that organizations can simply respond when an issue arises. But he believes an innovative and proactive approach could avoid the negative impact of a crisis on the company’s market valuation and brand reputation.