how do you stay relevant to your business? - iia fiji do you stay relevant to your business? shagen...
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HowDoYouStayRelevantToYourBusiness?
ShagenGanason,CIA
TheInstituteofInternalAuditorsFiji
2017AnnualConference5– 6May2017MarriottResortMomi Bay,Fiji
Tostayrelevant,youneedto….
1. Buildandmaintainpositiverelationship2. ThinklikeSeniorManagement3. Breakdownsilos4. Participateincommitteesandprojects5. Challengethestatusquo6. Reportrealimpacts7. Communicate8. Becomeatrustedadvisor
Roleofinternalaudit
• ThefundamentalroleofInternalAuditisprovidingreliableassurance inahighlyefficientmanner withaviewtoprovidinginputintoimprovement ofbusinessprocesses.
• Ahighlyeffectiveauditfunctionhasanotableimpactonthebusinessasaresultofdeliveringontheneedsofthebusiness.
Thinklikeseniormanagement
EnterpriseRiskBusiness
Processes
Credit
Culture
IT
BrandLiquidityRegulatory
Traditional
NonTraditional
Strategicfailuresmattersmost
NonTraditionalAssurance(Strategic/Culture/ValueforMoney)
TraditionalAssuranceFocusLegal/Operations/IT/Compliance
81% 19%
Basedon2016Fortune1000companies -Frequencyofmajordeclines inmarket
capitalisation
Regulatoryassistance
§ Reviewmanagementresponsestoregulators§ Provideadviseon
• Completenessofdocumentation• Clarityofresponses• Soundnessoflogic• Accuracyofcalculations
§ Sharedocumentationrelatedto• Processworkflows• Controls• AuditCoverage
Rootcausesoforganisationdecline
§ Declineincoreproductdemand§ Poormergerintegration§ Competitiveinfringement§ Destructivepricewar§ Marginpressure§ Investorlostofconfidence§ Seniormanagementturnover§ Corporaterestructuring
§ Poordemandforecasting§ Commoditypricedecline§ PoorITintegration
Source:ForbesMagazine2016,“RootcausesofMajorMarketCapitalisationDecline”
Strategicprojects
Strategic
Collaborate
TechnologyDrivenRealtime
HighVisibility
Participation
ManagementInternalAuditIT
Projectparticipationadvantages
§ Ensureinternalcontrolsembeddedinneworchangedprocesses• Managementcan“getitright”beforegolive• Auditcan“recommend”incollaborativeenvironment
§ Relationshipbuilding• BuildrelationshipswithbusinessandIT management• Positivevisibilityinstrategicprojects
Projectparticipationuniverse
§ Developandmaintainaprojectparticipationuniverse
§ Useriskbasedmodelstoscoreandselectprojectsforengaging
§ Includeinauditplantoalignauditcommitteeandobtainresources
Projectexecution
BusinessRequirements• Completeness• Management• Approvals• RegulatoryCompliance
Testing• Regression• SystemIntegration• UserAcceptance• ManagementApprovals
SystemConfiguration• SecuritySettings• BusinessRules
OperationReadiness• UserTraining• UserProvisioning• PolicyUpdates• Go/NoGoDecisions
EPMOandSteeringCommittees
Breakdownthesilos
Technology BusinessUnits
C-Suite Stakeholders
Seniormanagementaddressrisksilosandotherorganisational disconnects.InternalAuditorshavebroadorganisational viewandneedtouseit.
Participateincommittees
§ NewProduct§ NewBusinessVenture§ SteeringandGovernanceCommittees§ ITSteeringGroups§ EnterpriseRiskManagement§ OperationalRiskManagement
Challengethestatusquo
§ Challengeexistingcontroldesigns(especiallymanualcontrols)
§ Couldresultinparadigmchangingfindings
§ Don’tbeafraidtoaskquestions• Whatpercentageofyourjournalentriesaremanualvs.automated?• Whydoyouneedtoprintthesereports?• Howdoyouobtainsignaturesforapproval?• Whendoweneedtogetthematerialinby?
Communicate
§ Communicatefrequently§ Ensureagreementonfacts§ Betransparent§ Beconsistent§ Buildtrust
Routetobecomingatrustedadvisor
Controlandcompliance
Businessinsights
Strategicandvaluedtrustedadvisor
Non-negotiable BusinessRelevance TrustedAdvisor
TheEnablementGap
TheCompetencyGap
The
Transformation
Gap
Routetobecomingatrustedadvisor
Controlandcompliance
Businessinsights
Non-negotiable BusinessRelevance
BridgetheEnablementGap
§ Traditionalriskassessmentandplanning(notdrivenbybusinessrisk)
§ Heavyfocusonauditableunitsandlocations
§ Limiteduseofanalyticsandmodelling§ Limitedtraininganddevelopment§ Lackofeffectiveprioritisation§ Unwillingtochange§ Primaryfocusnotonbusinessprocess
improvements
Routetobecomingatrustedadvisor
Controlandcompliance
Businessinsights
Strategicandvaluedtrustedadvisor
Non-negotiable BusinessRelevance TrustedAdvisor
BridgetheCompetencyGap
§ Rotationalresourcingmodel§ Scaletoadequatelystaff
criticalareas§ Auditactivity=available
resource§ Exploreandexploitnon
traditionalaudits§ Alignwithstrategicplanand
initiativestosupportcompetitiveinsight
Comingtogether
§ No“us”versus“them”– itisonly“us”fromnowon
§ InternalAudithasresponsibilitytohelpmanagement
§ “Big”issuesmighthavebeenavoidedwithbetteraudits
Biginternalauditissues
§ Shareauditinformationwithmanagement§ Understandimplications(regulatory,financial,etc.)onbusiness
§ Explaininunbiasedtermstoseniormanagement§ Helpmanagement“connectthedots”asrequired§ Assistinadditionalimpactanalysis§ Participateinremediationprojects
Summary
§ Internalauditcanfosterpositiverelationshipsbythinkinglikeseniormanagement
§ Projectparticipationprovidesopportunitiestoengagewithseniormanagementinstrategicsetting
§ Dealingwith“big”issuesprovidesuniqueopportunitiestocontribute
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