Unlocking the Blockchain: COSO’s New Guidance for Businesses

Setting the Stage for Blockchain Guidance

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is gearing up to unveil fresh guidance on blockchain technology aimed at businesses ready to embrace this transformative innovation. As reported by a well-known financial news outlet, COSO’s efforts are particularly focused on curbing corporate fraud while enabling companies to better understand blockchain’s intricacies before diving in.

Target Audience: Financial Services and Supply Chains

This guidance is not just for tech geeks in hoodies; it’s specifically crafted for executives in the financial services industry and companies looking to leverage blockchain to streamline their supply chains. Paul Sobel, COSO’s chairman, had some insightful thoughts when he said, “We’ve got to ensure that we’ve got that properly controlled because it is a very different view of the world when you have distributed ledgers.” Indeed, it’s a wild world out there with decentralized systems that can make even the most seasoned IT professionals clutch their pearls.

Why It Matters: Internal Controls and Risks

The forthcoming COSO guidance aims to equip companies with the necessary tools to set up internal controls and effectively manage enterprise-wide risks. In Sobel’s words, the hope is to encourage both executives and board members to initiate conversations about their oversight responsibilities—after all, better communication leads to better outcomes, especially when it comes to burgeoning technologies like blockchain.

Fact or Fiction: Prophecies of Blockchain Adoption

As companies gear up for the blockchain revolution, projections are looking rosy. A study from a research firm indicated that integrating blockchain with Internet of Things (IoT) technology could drastically cut costs within retail supply chains. It’s like getting a two-for-one deal: better regulation compliance and swifter food recalls, all while tackling fraud like a superhero.

A Race for Innovation: Patents and Spending Trends

While the U.S. has been a prominent player in navigating blockchain adoption, China seems to be sprinting ahead. Measured by patent applications, in 2018, China submitted around 60% of the total blockchain-related patents from the top five countries—U.S., China, Japan, South Korea, and Germany. So next time you hear someone brag about their country’s tech prowess, just hit them with some blockchain patent facts!

A report from an American market intelligence firm suggested that China’s investments in blockchain technology could surpass a staggering $2 billion by 2023. That’s a hefty amount, and it indicates just how serious China, among other countries, is taking this technology.