Distributed Controllership

A key risk for GE in conducting business across such a diversified global platform is the need to ensure that every employee at every site, no matter how small or remote, is conducting business in an ethical way and in compliance with GE’s Code of Conduct.

To assist in these efforts, GE performs an annual risk assessment for approximately 1,500 sites based on common internal and external risk indicators. GE businesses and the Corporate Audit Staff partner to review these risk assessment results and develop site audit plans. Additionally, sites identified as having an elevated level of risk are required to complete a comprehensive compliance and financial controls self-assessment addressing controls in key areas. Self-assessment and audit results are monitored by business controllers and periodically summarized and reviewed with the GE Controller and Policy Compliance Review Board.

A number of initiatives are being launched that are designed to address common themes arising from the assessments. Projects under way include development of common tools and guides for use in conducting site visits. We will continue to report on the progress of the compliance initiatives.