Creation of Internal Control Tools to Address Emerging Challenges of the External Environment

Today domestic entities operate under the conditions of environmental challenges significant influence, which are predominantly negative and unpredictable. The study of the challenges on the financial and economic organization activities impact makes it possible to justify the need to transform the business model in such way that it is resistant to environmental risks through the use of internal control tools. The purpose of the study is to analyze the current challenges of the external environment and their impact on the internal control system of an economic entity. The information base of this study was regulatory documents and guidelines in the field of integrated reporting, internal control, risk management, as well as publications in periodicals of Russian scientists in the framework of this area. The methodological aspects of the internal control tools application are considered based on the materials presented in the open sources of PJSC Tatneft. In the course of the work, such research methods as comparative analysis of domestic sources on the object under consideration, as well as abstract logical analysis, grouping and generalization were used. The procedure includes the use of theoretical methods set that make it possible to study internal control and its components as a complex and multifunctional object and to form recommendations for their adaptation to modern conditions of financial and economic activity. The relationship between modern challenges and environmental factors according to the COSO concept, as well as scientific views on the types of internal control tools were observed in the article. The insufficiency of the list of risks recommended for disclosure in Information No. PZ-9/2012 “On Disclosure of information on the risks of an organization’s business activities in the Annual Accounting statements” was revealed. The author proposed to expand the understanding of the environmental factor “Society” in the COSO concept, as well as to introduce “New factors” into the system that the company had not previously identified. From the author’s point of view it was recommended to supplement the methodology of supervision (monitoring) as an internal control tool in order to form a complete representation of the external environment risks and ensure timely response to them. The practical significance of the research lies in the fact that its can be applied both from the point of theoretical and methodological components view in the internal control practice by domestic enterprises.