Information Systems Security Norway Company Analysis
-
Upload
idola-swanson -
Category
Documents
-
view
25 -
download
2
description
Transcript of Information Systems Security Norway Company Analysis
Thomas BishopGinger Edmonds
Daniel CarrierCory Facemire
Group 7
Criteria for Company Framework
CIA Fact book
Research Insight
Company 10K for last five years
Individual Company Website
Yahoo Finance
The Ranking System 1). Does the company include an external audit within their
10k Reports? Scoring: 0 – was not included in the reports 5 – included, but showed weak internal controls 10 – included and showed no internal control weakness
2). What is the degree that risk, controls and governance are mentioned within the reports? (Norway Government stds)
Scoring: 0 – if controls are only mentioned briefly 5 – if internal controls are mentioned in additional sections more than once 10 – internal controls are mentioned throughout the reports greater than two
different occurrences
3.) Does the company disclose improvements about their internal controls?
Scoring: 0 – no mention of any weakness or strengths 5 – shows weakness within the system 10 – show improvements upon prior areas of weakness
4.) Does the company mention or show that management is ultimately responsible for the company’s internal controls?
Scoring : 0 – no mention of management responsibility 5 – show that management is held responsible for internal controls 10 – based on management’s evaluation of the company’s internal
controls are effective
5). How well do the companies disclose their Internal Controls?
Scoring : 0 – no framework or structure was mentioned for internal controls
within the report 5-mention internal controls and disclosures 10 – internal controls substantially presented within the reports
6). How does the company rank according to it’s financial and operational risk?
Scoring : 0-High risk 5-Medium risk 10-Low risk
STATOILHYDRO ASA
Integrated Oil & Gas
World’s largest operator in
water > 100 meters
Norwegian State holds 65%
Focus upstream oil & gas
operations
Wright Investment Services
Scorecard: STATOILHYDRO ASAYear ended 2003 2004 2005 2006 2007
Question:
1 – External Audit 5 5 10 10 0
2 – RCG 0 0 0 5 10
3 – Improvements 10 10 5 5 5
4 – Mgmt Responsibility 0 0 0 0 0
5 – Internal Control 5 5 10 10 10
6 – Fin/Oper. Risk 5 5 5 5 5
Total: 25/60 25/60 30/60 35/60 30/60
Average: 24/60=40%
StrengthInternal Control
WeaknessManagement Responsibility
AKER SOLUTIONS ASA Oil & Gas Exploration & Prod
Subsidiary to Aker Asa
Ownership
Multiple Industries
Wright Investment Services
Scorecard: AKER SOLUTIONS ASA
Year ended 2003 2004 2005 2006 2007
Question:
1 External Audit 0 0 0 0 0
2 RCG 0 0 0 5 5
3 Improvements 5 5 10 10 10
4 Mgmt Responsibility 5 10 10 10 10
5 Internal Control 5 5 10 10 10
6 Fin/Oper. Risk 5 10 0 0 0
Total: 20/60 30/60 30/60 35/60 35/60
Average: 25/60=42%
StrengthManagement Responsibility
WeaknessRisk, control & governance
SOLSTAD OFFSHORE ASA
Oil & Gas Drilling
29 vessels, 3 segments
1000 personal 73% @ sea
2216 million NOK
North Sea, Mediterranean,
West Africa, Asia, and
The Americas
Scorecard: SOLSTAD OFFSHORE ASA
Year Ended: 2003 2004 2005 2006 2007
Question:
1 External Audit 0 0 0 0 0
2 RCG 5 5 5 5 10
3 Improvements 0 0 0 0 0
4 Mgmt Responsibility 0 0 0 0 0
5 Internal Control 5 5 5 5 5
6 Fin/Oper. Risk 5 5 5 5 5
Total: 15/60 15/60 15/60 15/60 15/60
Average: 15/60=25%
StrengthRisk, control & governance
WeaknessManagement Responsibility
PGS-PETROLEUM GEO-SERVICES
Oil & Gas Drilling
Multi-client data library
Corporate Governance
Geophysical Services
Investor Relations
Scorecard: PGS-PETROLEUM GEO-SERVICES
Year Ended: 2003 2004 2005 2006 2007
Question:
1 External Audit 5 5 0 10 10
2 RCG 0 0 5 5 5
3 Improvements 0 0 5 0 5
4 Mgmt Responsibility 5 5 5 10 10
5 Internal Controls 0 5 5 0 5
6 Fin/Oper. Risk 5 0 0 0 0
Total: 15/60 15/60 20/60 25/60 35/60
Average: 18/60=30%
StrengthExternal Audit
WeaknessFin/Oper. Risk
REVUS ENERGY ASA Oil & Gas Exploration & Prod
Founded in 2002
Medium Sized company
Explores Norwegian continental
shelves
Scorecard: REVUS ENERGY ASA
Year Ended: 2003 2004 2005 2006 2007
Question:
1 External Audit 0 0 5 5 5
2 RCG 0 0 5 5 10
3 Improvements 0 0 0 0 0
4 Mgmt Responsibility 0 0 0 5 5
5 Internal Controls 0 0 10 10 10
6 Fin/Oper. Risk 5 5 10 10 10
Total: 5/60 5/60 30/60 35/60 40/60
Average: 19/60=32%
StrengthFin/Oper. Risk
WeaknessImprovements
SUBSEA 7 INC Oil & Gas Drilling
Global operations
5500 personal on & offshore
World leading subsea engineering
& construction
Scorecard: SUBSEA 7 INC
Year Ended: 2003 2004 2005 2006 2007
Question:
1 External Audit 0 0 10 10 5
2 RCG 0 0 5 10 10
3 Improvements 0 0 0 0 0
4 Mgmt Responsibility 0 0 0 10 10
5 Internal Controls 0 0 10 10 10
6 Fin/Oper. Risk 0 5 0 10 10
Total: 0/60 5/60 25/60 50/60 45/60
Average: 21/60=35%
StrengthInternal Controls
WeaknessImprovements
Recap of initial rankings
Rankings of Criteria
Conclusions: Higher income does not equal increased controls
Overall – internal and external controls were increased due to the implementation of IFRS in 2005
Aker Solutions & Solstad Solutions did not support an external audit in the past 5 years
There was an overall concern to increase governance after the implementation of IFRS in 2005
Recommendations: Corruption control-government Institution of Internal Auditors Norway More External Audits Put more internal controls in place Invest in Statoilhydro Benchmark against Statiolhydro
Any Questions?