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You are viewing ARCHIVED CONTENT released online between 1 April 2010 and 24 August 2018 or content that has been selectively archived and is no longer active. Content in this archive is NOT UPDATED, and links may not function.Extract from article by Abbott Martin
A common definition of coordinated assurance is organizing and aligning assurance processes across functional boundaries to maximize operating efficiency while 1) managing risk and governance within company’s risk appetite and 2) providing holistic visibility and assurance to the board, regulators, and customers. Done well, the system accomplishes the goals of corporate assurance – providing assurance, visibility, and intelligence – while limiting the direct and indirect costs of doing so.
Those unfamiliar with coordinated assurance may struggle to see how it works in practice or understand what good looks like. To help, we’ve identified four key components that define successful coordinated assurance.
Component 1: Integrated Risk Management Framework — Coordinated assurance requires a common understanding of the company’s risk universe, risk ratings, rules for oversight ownership and guidelines for when new risks are added to the framework.
Component 2: Shared Work and Information — Rather than buying or creating new systems and surveys to manage risks, leading companies use existing datasets to obtain that intelligence. Sharing risk information from these datasets across teams helps all assurance functions understand the risk environment and supports mutual conclusions about risk and resource allocation. Taking it one step further, assurance functions can coordinate a schedule of on-site reviews and use each other’s work to avoid duplicating efforts.
Component 3: Activity and Control Rationalization — Coordinated assurance requires processes for reducing duplicative activities. This includes collecting only vital risk information and avoiding repetition of questionnaires and assessments. If two teams must collect the same information, they should ensure the data definitions and metrics of separate surveys are consistent and business leaders do not receive multiple requests at one time.
Component 4: Coordinate Risk Reporting — Assurance partners should coordinate when they deliver risk reports to management and the board and ensure that the reports tell a cohesive story. Reporting timing should also support corporate decision-making and annual planning cycles whenever possible.
Read the complete article at Creating a Coordinated Approach to Assurance
