Financial planning analysis and ERM are very much integrated and they should be. They can be integrated by depending on the projection or metric that you are looking at. It's working in business partnering with your business counterparts to gain insights into other factors that could be influencing your projections.
So, a good example I like to take is, say, you are looking, as a company, you are looking to acquire a company, and your natural tendency from an FP&A standpoint is to calculate a net present value and see if you can actually afford the company. But there is other facets that are important that enterprise risk management offers – things like does that company actually align with the objectives of the parent company that is looking to acquire that, is the actual reputational aspect of that company, was that going to add value to the parent company or not, and then more importantly from an FP&A perspective is allocating resources. So, while we want to have this opportunity to take on this company and we feel that it's exciting and it will generate a lot of shareholder value, do we actually have the headcount and resources to actually manage that integration?
A common practice for how we integrate FP&A – FP&A and enterprise risk management within the internal audit capacity is the simple case of SOX, right. So, everyone is required to be SOX compliant and processes needed to be audited and internal controls need to be developed. So, it's really important to make sure that those processes and areas that are actually generating some of the financial information are being monitored and tested for operating effectiveness. So, that’s an example of how from an audit perspective we are looking at the gatekeepers of the organization from an FP&A perspective.