Editor's page.

• Author: Marshall, Jeffrey
• Position: Surveys on global risk management practices - Cover story

Mattel Inc.'s rush to apologize a few months ago following the discovery that many of its toys made in China had been coated with lead paint cast a particularly harsh light on global risk management practices. Yet, a corresponding survey by Ernst & Young revealed that more than half of large-company risk management executives polled said they had no policies in place for handling risk in emerging markets.

Our cover story examines overseas risk and finds that companies have a lot to keep them up at night, including theft of intellectual property, bribery issues, possible political upheaval and a lot more. It offers expert advice and resources for doing research on individual country risk factors.

A study conducted by an IBM Corp. unit, in conjunction with the Wharton School at the University of Pennsylvania and the Economist Intelligence Unit, found that effective integration of information across the enterprise was a key differentiator for financially successful companies. It identifies four primary components of good information governance and what is referred to as Integrated Finance Organizations (IFOs). Unfortunately, writes IBM's Stephen Rogers, fewer than one in seven enterprises can be deemed an IFO, which has more resiliency to combat event risk and statistically outperforms its peers.

Financial fraud can be pretty sophisticated, as forensic accountant and investigator Paul Regan has learned many times over. Writer Paul Sweeney profiles Regan, the head of San Francisco firm Hemming Morse, and collects a series of lessons about what companies should be vigilant about in order to deter fraud.

At its most common, writes analytics software firm CEO Chris Houle, a budget is a historical document tracking monies spent and earned with a nod toward anticipated changes. At its worst, however, a budget is a stagnant document in which errors and misassumptions are unquestioned and allowed to go forward. He...