trusted advisors - the institute of internal auditor relations document… · – prescience •...
TRANSCRIPT
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Trusted Advisors
Richard F. ChambersCIA, QIAL, CGAP, CCSA, CRMA
President & CEO
The Institute of Internal Auditors
Key Attributes
of Outstanding Internal Auditors
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Agenda
• Heightened expectations
• Internal auditors as “Trusted Advisors”
• Attributes of outstanding internal auditors
– Personal
– Relational
– Professional
• The internal audit leader of tomorrow
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Internal Audit Stakeholders Expect More
Management• Company expertise• Advice/insight• Foresight• Risk-centric focus
• Over-regulation• Cybersecurity• Operations• Technology
Regulators
• Independence• Proficiency• Assurance• Focus on compliance• Insight on culture
Audit Committees
• Assurance• Company expertise• Relationship acumen• Communication• Coordination with
other risk/control functions
Achieving Alignment
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To Meet Expectations . . .
We must:
• Identify our gaps.
• Deploy effective strategies for
success.
• Be relevant, timely, and risk-
centric.
• Be trusted!
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An Imperative for Every Internal Auditor
Being a Trusted Advisor
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Trusted Advisors
• Internal auditors as “Trusted Advisors”
• The essence of trust
• Attributes of outstanding internal
auditors:
– Personal
– Relational
– Professional
• Cultivating Trusted Advisors
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• Trust must work both ways.
• We must be reliable, truthful, able,
and strong.
• The best share attributes that win
and sustain trust.
• The very best are trusted, whether
providing advice or assurance.
The Essence of Trust
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Attributes of the Trusted Advisor
Source: “Trusted Advisors – Key Attributes of Outstanding Internal Auditors”
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Personal Attributes
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• Ethical commitment among top 3 attributes.
• Ethical behaviors:– Integrity
– Courage
– Accountability
• Trustworthiness
• Willingness to “throw the flag”
• Shatterproof house
• Pressure to change audit findings
Ethical Resilience
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Results Focused
• 88% of survey respondents rated this attribute as critical.
• Obsess over:– What happens after the audit?
– Was there an impact?
– Was there productive/beneficial change?
– Did I drive improvement?
• Master foundational sub-traits– Work ethic
– Productivity
– Timeliness
– Determination
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Intellectually Curious
• It’s not enough to know what happened.
• Obsess over why – the root cause!
• Follow the risks.
• A dose of healthy skepticism.
• Leverage intuition.
• CQ (Curiosity Quotient) = “hungry mind.”
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Open-Mindedness
• Credibility comes from open-mindedness,
flexibility, and reasonableness.
• Habits that will impede trust:
– Dwelling on the past.
– Not getting to the bottom of issues.
– Not taking a myopic view on recommendations.
– Not getting input from those you are auditing.
– Viewing the world in black and white.
• A hiatus can foster an open mind.
Hindsight Insight Foresight
Open-mindedness
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Relational Attributes
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Dynamic Communicators
• 95% rate communication skills as essential.
• 45% say more training is needed.
• “Soft side” vs. “technical side” is most critical.
• 5 words or phrases to avoid:
– “Failed” – “We found”
– “Inadequate” – “It appears”
– “Ineffective”
• Right tone is essential.
• “We agree with the recommendations, but not the findings.”
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Insightful Relationships
• Sustained trust is rooted in relationships.
• Not a popularity contest.
• Relationship-building starts within internal audit.
• Relationship acumen is critical: – Positive intent
– Diplomacy
– Prescience
• Rotational assignments yield strong relationships.
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Inspirational Leadership
• Inspirational leaders:– Articulate a motivational vision.
– Think in ways that inspire others.
• Converting thoughts to actions:– Share the experience/let others lead.
– Coach others to greatness.
– Build teams/promote teamwork.
– Employ purposeful emotion.
– Address challenges.
– Earn and extend trust.
• Sports coaches can be great leaders.
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Professional Attributes
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Critical Thinkers
• Use “reasoning and logic, not emotion, to evaluate information and consider alternatives.”
• Interconnected with intellectual curiosity.
• Make sense of information generated by curiosity.
• Being skeptical is integral to critical thinking.– Healthy
– Credible
• Obstacles to critical thinking: bias, speed, ambivalence.
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Technical Expertise
• Become a Renaissance
auditor.
• “Know your beans.”
• 3 keys:
– Know your business.
– Know your industry.
– Know technology.
• You are never too important to
learn.
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Cultivating Trusted Advisors
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Cultivating Trusted Advisors
• Trusted advisors are not born –they are nurtured:– Training
• Communications
• Intellectual curiosity
• Critical thinking
• Leadership
• Industry risks
• Technology
– Coaching
– Mentoring
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Thank You!The Institute of Internal Auditors
Richard F. Chambers, CIA, QIAL, CGAP, CCSA, CRMAPresident & CEO, The Institute of Internal [email protected]
@RFChambers