Risk Engineering - Strategic Risk Practice

CONFIDENTIAL

Assurance Mapping

CIPFA CiM Audit Training Seminar

October 2013

Sally-Anne Woulidge

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AgendaObjectives of the session:

1What is an assurance and assurance mapping?

2 Who benefits and why?

3 Critical success factors

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Assurance

What is an assurance?

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AssuranceComes in many shapes and forms

1Assurances are processes or activities that

monitor and measure the effectiveness of the

controls.

2 Assurances can be both positive and negative.

3The important point is that they must provide the

Board with sufficient information to make

informed decisions.

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Assurance

Who can provide assurance?

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AssuranceIs provided through many avenues

Visible

Business as usual

Business Units

Corporate

Oversight

IndependentAssurance

3 Lines of Defence

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Assurance MappingWhat is an Assurance Map?

Assurance Map

A colour coded representation of quality/level

of assurance coverage

against key risks

A mechanism to review gaps

in risk & assurance

programmes in line with an

organisation’s appetite

A visual representation

of assurance concentration

or gaps

Consideration of all assurance activity in one

location

A pictorial reporting tool

Assessment of efficient use of

resources

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Assurance MappingExamples …..

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Assurance Mapping

Who would benefitfrom this information and

why?

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Assurance MappingThose that would benefit from this insight are…

Stakeholders

MembersMembersMembersMembers & & & & Executive Executive Executive Executive TeamTeamTeamTeam

Independent Members

Assurance Committees

Senior ManagementProject leads/owners

Other assurance providers

Regulatory Bodies

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Assurance MappingWhy do they benefit?

BENEFITS Why do it?

One view of

Business Risk

Control

Environment

One co-ordinated visual tool which, alongside the

strategic risk profile and appetite, enables an

organisation to identify potential risk exposures and

ineffective use of assurance resources.

� Informs annual governance

statement

� Consolidates multiple sources of

reliable assurances

� Highlights:

a) Concentrated sources of

assurance

b) Providers and possible

ineffective use of

assurance initiatives

c) Gaps in the assurance

programme

d) Opportunities for future

design/focus of assurance

provisions

Drives Value Ensures the right level/type of assurance is provided

over the right risks in support of management’s

successful achievement of objectives.

Potential Cost

Reduction

One view of the costs for control and assurance

programmes. If coupled with the Total Cost of Risk,

creates a powerful tool to enable organisations to

reduce costs in an era of austerity.

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Assurance Mapping

What needs to be mapped?

Start at the highest

level and then once

obtained buy in,

culture and ‘tone at

the top’ work

through organisation

Assurance

Key Risks

Sources of assurance

Business

Operations

Corporate

Oversight

Independent

Assurance

Inherent Residual

Risk

Assessment

Strategic risks

Operational/

Business risks

Process and

Procedures

Assurance MappingMapping depends on the organisation but a full map would….

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Critical Success FactorsTo embedding an assurance mapping process.

CSF

Relevant language

Buy in

Governance structure

Clear accountabili

ties

Robust risk

identification

Integrated approach

Know assurance providers

Know your assurance

Factual not opinion

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Your views count…

Any thoughts,

view and/or questions?

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This document is confidential and should not be provided to any third party without prior written consent from Zurich Insurance plc. It provides general information for discussion only and is not intended, and should not be relied on, as specific advice or as a substitute for taking advice on your circumstances. Neither Zurich Insurance plc nor any company in the Zurich Insurance Group will accept any responsibility for any actions taken or not taken on the basis of the information contained in this presentation. Thank you for your help.

Zurich Municipal is a trading name of Zurich Insurance plc, a public limited company incorporated in Ireland Registration No. 13460. Registered Office: Zurich House, Ballsbridge Park. Dublin 4, Ireland. UK Branch registered in England and Wales, Registration No. BR7985. UK Branch Head Office: The Zurich Centre, 3000 Parkway, Whiteley, Fareham, Hampshire PO15 7JZ. Authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request, FCA registration number 203093. These details can be checked on the FCA’s register by visiting their website www.fca.org.uk or by contacting them on 0845 606 1234. Communications may be monitored or recorded to improve our service and for security and regulatory purposes.