Global Transfer Pricing Risk Management

The realities of the business environment in which multinational groups operate today consist of a shrinking domestic market and an ongoing pressure to reduce costs. In addition, multinational groups are also faced with the different expectations of different stakeholders and the increased disclosure requirements of financial data. It seems that many multinational groups may have risk management structures in place, but often lack proper control mechanisms.

Transfer pricing governance needs to be based on the strategic goals and aims of transfer pricing, and multinational groups must consider how to manage their transfer pricing risks and processes to achieve the these goals. It is important to identify individuals within a multinational group who understand transfer pricing and ensure that there is constant communication between these individuals.