Governance and internal controls: The keys to sustainable growth

In SMEs, where every resource counts, disciplined speed becomes a form of agility. “Once controls are in place, they provide a clear and reassuring framework. Everyone knows exactly what to do, processes become fluid, and collaboration becomes more effective. Everything moves faster.”

Beyond preventing errors, a sound internal control system strengthens the organization’s credibility with investors and partners. “When a business leader seeks to raise capital or welcome new shareholders and/or investors, strong controls are a mark of trust. They reinforce the organization’s credibility and can even accelerate access to financing.”

From large enterprises to SMEs: Adapting without adding complexity

In an SME, human and financial resources are limited. However, it is entirely possible to put in place an advisory committee or surround oneself with a group of external advisors to benefit from tailored strategic support, notes Martin Cloutier.

The goal is not to replicate the complex structures of large organizations, but rather to extract the useful principles from them. “Best practices exist; they simply need to be scaled appropriately.”

Among these practices, he identifies three essential ones:

• Assessing and managing risks: “Not knowing your risks means running the risk of investing time and resources in the wrong place, far from true priorities”;
• Monitoring key performance indicators (KPIs): “It’s important to know whether we are progressing in the right direction”;
• And training employees: “Executives and shareholders cannot monitor everything. Well-trained employees then become valuable allies. Training helps raise employee awareness of emerging risks and strengthens their skills”.

Cybersecurity: The most underestimated internal control

According to Martin Cloutier, cybersecurity today represents “the first internal control to implement, regardless of the size of the organization.” Too often relegated to the background by SMEs, it nonetheless represents a constant threat.

He recommends establishing a clear incident response plan and a continuous training plan. “Employees are often the first point of entry for an attack. It is therefore essential to instill the right reflexes, thinking before clicking on a link in an email or scanning a QR code, and remaining vigilant against phishing attempts.”

In a context where operations increasingly rely on digital tools, Martin reminds us that a single click can be costly. “An SME that sells online collects sensitive data, such as credit card information or addresses. Speed of execution and creativity require frequent adjustments to our positioning. This is a strength, but also a risk.”

Artificial Intelligence: Vigilance and opportunity

New technologies offer promising tools for automating certain controls, but they require caution. “We are still in the monitoring phase,” he acknowledges “There are interesting solutions on the market, but we must avoid sharing sensitive data in public tools such as ChatGPT or in solutions not managed by the companies’ IT departments.”

At Forvis Mazars, the firm is also developing its own artificial intelligence to synthesize innovation and security. “In an SME, you need to observe what is happening without rushing. But it is certain that AI represents an opportunity not to be missed.”

Establishing a culture of control

For SMEs wishing to take the next step, the first response is simple: identify the major risks.

Once these risks are defined, the organization can structure its actions, prioritize its initiatives, and mobilize its teams effectively. By understanding the potential risks and the underlying logic of the controls, employees naturally take ownership of the processes and fully assume their responsibilities. According to him, this culture of ownership is decisive: when teams understand the meaning of the expected actions and are given trust, they become true extensions of internal control.

An investment, not an expense

Some entrepreneurs still hesitate, believing they are “too small” to invest in internal control. Martin Cloutier invites them to reconsider this perception: “This is not an expense; it is a strategic lever. All else being equal, an investor will always choose the better-structured company.”

For organizations wishing to go further, Forvis Mazars offers flexible support tailored to their needs. The firm can act as an external advisor, help identify risks, monitor cash flows, and provide monthly analyses.

Governance without burden

In conclusion, Martin Cloutier emphasizes that “governance does not need to be formal to be constructive. Small actions can deliver significant returns.”

A well-adapted internal control framework is not a burden; it is a discipline that protects, structures, and enhances the organization today and in the future.