94% Errors on Spreadsheets: Automate with CAA ERM

Are you still using spreadsheets?

Raymond R. Panko representing the Shidler College of Business in Hawaii, research on spreadsheet errors are substantial, compelling, and unanimous. It has the following three (3) simple conclusions.

  • The first is that spreadsheet errors are rare on a per-cell basis, but in large programs, at least one incorrect bottom-line value is very likely to be present.
  • The second is that errors are extremely difficult to detect and correct.
  • The third is that spreadsheet developers and corporations are highly overconfident in the accuracy of their spreadsheets.

The disconnect between the first two conclusions and the third appears to be due to the way human cognition works. Most importantly, we are aware of very few of the errors we make. In addition, while we are proudly aware of errors that we fix, we have no idea of how many remain, but like Little Jack Horner, we are impressed with our ability to ferret out errors. This paper reviews human cognition processes and shows first that humans cannot be error free no matter how hard they try, and second that our intuition about errors and how we can reduce them is based on appallingly bad knowledge

The CAA Enterprise Risk Management (ERM) platform is a predefined solution in a box. Buy and implement immediately with pre-defined criteria for every aspect of ERM. Your Excel spreadsheet on steroids.

Take the leap and test the most powerful and cost effective system on the market. No more use of complex, un-auditable Excel spreadsheets, taking the risk officers days to compile risk reports.

For more information or for a demonstration, please contact Nico Snyman at 0764034307 or demo@crestadvisoryafrica.com