From Dubai to Beijing

Transcription

1 From Dubai to Beijing (How we use your GC input) Anton van Wyk, Chairman of the Board

2 What Happens After GC? Global Council plays a key role in the governance process of The IIA. Discussion results are analyzed, summarized and provided to GC attendees. Input from discussions is used by the Board/committees/task forces/staff in driving initiatives.

3 Topics Discussed in UAE 1. Strategic Planning 2. Reassessing the IPPF 3. Expanding IIA Services beyond IA 4. Advocacy 5. Membership Value Proposition

4 Strategic Planning 2014 GC Results: Strategic planning should include outside perspectives. IIA should be more proactive and visionary. The IIA should be the leader in bringing together compliance, ERM and governance. The IIA should better educate stakeholders. More collaboration with IIA institutes is needed in developing the plan.

5 2015 Update: Strategic Planning Several Institute leaders were included in the SP session in August The session included perspectives from a futurist and from an Audit Committee Chair. Several suggestions raised are incorporated in the new strategic plan.

6 Reassessing the IPPF 2014 GC Results: Members are in various degrees of conformance with the Standards based on the maturity of the profession and the maturity of the Institute. The definition is long but is incorporated into many audit charters and some legislation. A shorter version might be beneficial. More industry specific guidance is needed.

7 Reassessing the IPPF 2015 Update: Suggestions were reviewed and summarized for the Task Force. The full proposal was exposed to the membership for input. The Definition was kept intact but a shorter mission statement was included.

8 Expanding IIA Services 2014 GC Results: Risk management is a logical extension of IIA services (although some felt it crossed the boundaries into the 2 nd line of defense). The IIA should invest in providing guidance, tools, and leading practices in risk management.

9 Expanding IIA Services 2015 Update: A Risk Resource Exchange was developed and is available on the IIA website. The IIA continues to partner with ISACA on an annual GRC Conference. One track at the International Conference in Vancouver is fully devoted to risk.

10 Advocacy Strategy 2014 GC Results: Most institutes advocate, but to varying degrees. Institutes want global representatives at conferences to attract media attention. More collaboration between IIA and the institutes is needed (e.g., IFAC, INTOSAI).

11 2015 Update: Advocacy Strategy The GAC has regional representatives. The Executive Committee and Senior leadership continue to visit our institutes and speak with media when possible. The IIA is working with institutes on membership opportunities, the ACCA challenge exam, and other advocacy targets. Institutes receive regular updates on advocacy.

12 Member Value Proposition 2014 GC Results: Most institutes have challenges in recruitment and retention of members. Top priority is increasing services to current members. Primary service to members should remain at local level.

13 Member Value Proposition 2015 Update: The ICP is being launched to help developing institutes IIA will provide training and other tools for institutes to pass on to their members. Working with several institutes to determine needs and evaluate results.

14 Conclusions Your voice is being heard. The GC provides a key venue for gathering information on key issues and for keeping you informed of global activities. Your active participation in the discussions this week will help drive the profession and The IIA to meet the needs of the changing profession.

15 IIA Global Strategic Plan Larry Harrington, Senior Vice Chairman of the Board

16 Leveraging the Global Strategic Plan A Global Roadmap The Global Strategic Plan acts as a higher-level map or blueprint for the global professional body. A Resource to Leverage Encourage Institutes to proactively incorporate the global plan into their strategic planning process or reactively align existing Institute plans with goals and strategies in the global plan. Global Accountability Position the Global Strategic Plan as THE plan for The IIA. Encourage accountability across the Global network through discussions at Global Council that will support implementation.

17 Global Strategic Plan: Framework for Discussion Professionalism Advocacy Leading Voice Capacity Sustainable Value The IIA will lead the profession through the development of timely and relevant knowledge, global guidance, and career path guidelines. The IIA will have raised the profile of and demand for the profession to ensure it is recognized as an indispensable resource by key stakeholders. The IIA will be recognized as the leading voice for internal auditing. The IIA will collaborate globally to enhance the capacity of the profession. The IIA will deploy both financial and business models that generate sustainable value for members.

18 Intended Outcomes Discussion Topics: 1. Capacity Building 2. Professionalism 3. Advocacy/ Leading Voice 4. Sustainable Value Deeper understanding of the role of the Global Strategic Plan Greater awareness of and support for leveraging the Plan locally Ideas and input across the Global network regarding implementation of the Plan and the role of Institutes in achieving our shared goals.

19 Capacity Building Phil Tarling, Past Chairman of the Board

20 Global Strategic Plan The IIA will collaborate globally to expand the capacity of the profession. Specific objectives: To ensure minimum services to all members. To address the needs of emerging and small Institutes. To enhance the repository and exchange of products and services.

21 Minimum Services 1. Free access to IPPF s Mandatory Guidance in the local language. 2. Access to certification preparation courses. 3. Access to a number of CPE hours annually.

22 Minimum Services 4. Access to at least one local networking event annually. 5. Access to internal audit-related publications. 6. Access to an Institute webpage that is maintained and current with basic information.

23 Capacity Building Initiatives International Chapter Program Through this new program, IIA Global HQ will assist Institutes in administering their membership and delivering minimum services to their members. A new Mentoring Program will also be deployed to ensure that International Chapters mature more efficiently.

24 Capacity Building Initiatives International Chapter Program The ICP will be launched in Q3-Q and will be used automatically for all new International Chapters to be formed. It will also be available for any existing Institute that voluntarily wishes to take advantage of this program.

25 Capacity Building Initiatives Progress Through Sharing IIA Global HQ aims to leverage its resources to support Institutes and International Chapters; however it will soon need to engage other Institutes due to limitations such as language and culture.

26 Professionalism Angela Witzany, Vice Chair Professional Guidance

27 Strategic Plan Professionalism: The IIA will lead the profession through the development of timely and relevant knowledge, global guidance, and career path guidelines.

28 Strategic Plan Professionalism Strategies FOCUS FOR INPUT 1. Share and promote timely and responsive knowledge and guidance on emerging issues needed by the internal audit function and internal audit members and professionals. = Developing Timely and Relevant Content = Managing Local Guidance

29 Strategic Plan Professionalism Strategies FOCUS FOR INPUT 2. Assess the future direction of the profession and prepare internal auditors for success through clearly defined learning pathways and established career maps. = Supporting Diverse Career Paths

30 Strategic Plan Professionalism Strategies FOCUS FOR INPUT 5. Review and enhance means by which we hold members accountable for conformance to the IPPF principles, codes of conduct, and local laws and regulations. = Promoting Conformance to the Standards and Code of Ethics

31 Advocacy/IIA as a Leader Larry Harrington, Senior Vice Chairman of the Board

32 I AM THE LEADING VOICE AMONG 180,000+ STRONG SHARING A POWERFUL BRAND WITH PASSION, PRIDE & COURAGE AND WHO EXCEEDS EXPECTATIONS

33 We Asked Identify the areas internal audit is considered a trusted and influential resource to its stakeholders You Told Us Yes To: Internal Controls (98%) Compliance (89%) Anti-Fraud (84%) Audit Committee Effectiveness (75%) Governance (71%) Management (70%)

34 We Asked Identify the areas internal audit is considered a trusted and influential resource to its stakeholders You Told Us No To: Technology (70%) Integrated Reporting Assurance (70%) Combined Assurance (52%)

35 We Asked What level of obstacles does internal audit face toward acceptance as a relevant, trusted, and influential resource on: You Told Us Medium to Low Obstacles Risk Management (83%) Audit Committee Effectiveness (82%) Governance (70%) Combined Assurance (68%)

36 We Asked What level of obstacles does internal audit face toward acceptance as a relevant, trusted, and influential resource on: You Told Us Low to No Obstacles Compliance (75%) Anti-Fraud (68%) Internal Controls (62%)

37 We Asked What level of obstacles does internal audit face toward acceptance as a relevant, trusted, and influential resource on: You Told Us High to Medium Obstacles Technology (72%)

38 We Asked To what degree is it important that the internal audit profession be seen as: You Told Us Extremely to Very Important Moral compass of the organization (93%) Courageous in challenging all lines of defense (87%) Extremely Important (48%) Protector of the public good (77%) Facilitator of foresight towards organizational sustainability (72%) Critical to good governance (70%)

39 Goal B: Advocacy The IIA will raise the profile of and demand for the profession to ensure it is recognized as an indispensable resource by key stakeholders. Recognition and acceptance by stakeholders Establishing appropriate benchmarks for measurement Advancing the internal audit profession within organizations. Elevating the image of internal auditing.

40 Goal C: IIA as The Leader The IIA is recognized as the leading voice for internal auditing. Driving dialogue and commentary around internal audit and risk management assurance. Contributing to debates and discussions on topics relevant to internal auditing.

41 Perception Gap Who are internal auditors? What do internal auditors do? How do internal auditors add value?

42 Globally and Locally We Must Elevate the profile and voice of internal audit and The IIA By 1. Making internal audit a relevant, trusted and influential resource to its stakeholders 2. Building the case for internal audit s critical role in ensuring long-term sustainability of their organizations

43 Using the Twitter Model Define the role of internal auditors in 140 characters or less. Agreed upon definition per table. Please be prepared to share when we meet later on today.

44 Sustainable Value Charlotta Löfstrand-Hjelm, Secretary

45 Strategic Goal The IIA will deploy both financial and business models that generate value for members. Objectives: Identify the member value proposition Identify resources to anticipate, identify and respond to emerging strategic risks

46 Global Value Proposition One IIA 180,000 members of global body One IPPF recognized globally One global certification program Global reach of social media Global training via e-learning Alignment of Institute (109) strategies

47 IIA Designations (as of ) Region QIAL CGAP CFSA CCSA CRMA CIA Grand Total Africa ,113 4,602 Asia Pacific ,053 2,107 4,059 56,277 63,905 Caribbean Central/South America ,465 2,727 Europe 7 1, ,340 2,690 12,062 17,842 Middle East ,100 4,137 No Country ,309 5,422 North America 17 2,172 4,134 1,761 5,624 47,848 61,556 Grand Total 42 3,893 6,247 6,715 14, , ,253

48 Discussion Questions: Value Proposition 1. What actions can we take to encourage membership growth and involvement? 2. What is your institute doing to promote certifications and what can be done to grow demand for certifications?

49 Risk Assessment Risks Environmental Business Enterprise-wide

50 Discussion Questions: Risk Assessment 1. What do you consider the top three risks that would affect the sustainability of your institute? 2. What do you consider the top three risks collectively impacting The IIA? 3. What recommendations do you have for The IIA to anticipate, identify, and respond to strategic emerging risks?

51 Update on The IIA And The State of The Global Profession Richard F. Chambers, President & CEO The Institute of Internal Auditors

52 Overview The Global IIA Footprint in 2015 The Global Headquarters Update Key Trends in The Global Profession

53 The IIA Global Footprint in 2015

54 The Global IIA in , MEMBERS COUNTRIES INSTITUTES CHAPTERS

55 Institutes by the Numbers By Region By Associated Organization

56 Members By Regions February 2015 Region Institutes Members Africa 24 13,291 Asia/Pacific 18 30,775 Central/South America 18 13,254 Europe 39 48,431 Middle East 7 6,000 North America* 2 72,586 Members at Large N/A 1,908 Worldwide Total ,245 *North America includes US, Canada and chapters in Caribbean

57 Members by Primary Language

58 5-Year Regional Membership Trends + 5% + 21% + 16% - 2% - 1% + 10%

59 5-Year Global Membership Trend +16,000 members +9%

60 Global Certifications & Designations March 2015 CIA: 130,000 CRMA: 14,200 CCSA: 6,700 CFSA: 6,200 CGAP: 3,900 QIAL: 45

61 2014 Global Financial Position $138.9 million in global revenue, 3% increase $11.4 million of net contribution, -10% increase $151 million in total assets, 10% increase $110.2 million in net assets, 10% increase *Combined statistics from Institutes, NA Chapters, and IIA Global HQ for FY ending in 2014

62 Top Revenue Components Worldwide Seminars & Conferences 46% Membership 32% Global Certifications 7%

63 Development of the Profession (% of Countries in Each Region) Source: 2014 Activity Reports

64 IIA Global Headquarters Update

65 The Revised IPPF

66 IPPF Enhancements: Next Steps 3/2015 IIA Global Board Approval 5/2015 Final Report Available for Translation 7/2015 Final Report Issued 7/2015 Proposed Launch IPPF (Vancouver) 7/ /2016 Implementation and conversion activities For more information: For more information:

67 CBOK 2015: Practitioner Survey Update Over 14,500 responses 2,586 CAEs and 1,457 Directors / Sr. Managers 3,725 Financial Services; 871 Public Sector 2,737 NOT IIA members 7% 7% Regional participation 30% 13% 20% 23% Asia & Pacific Europe North America South & Central America Africa Middle East

68 CBOK Key Dates & 2016 Practitioner Study Publish first results Vancouver July 2015 Data visualization tool launch Q Stakeholder Study Study begins Q Publish first results Q1 2016

69 2014: Key Trends in Internal Audit

70 Preliminary Thoughts from the CBOK/Pulse Data The resource outlook is strong The profession s focus remains diverse More emphasis is needed to audit at the speed of risk Talent profiles are continuing to evolve The emphasis on quality assurance is lagging

71 Outlook for Internal Audit Resources Remains Strong Budgets: Staffing: Change from Increase Stable Decrease Overall 40% 48% 12% Changes Experienced and Projected Increase Stable Decrease % 57% 12% % 59% 5% Source: The Pulse of the Profession: 2014 The IIA Audit Executive Center Source: The Global Pulse of Internal Audit Survey Conducted in collaboration with the 2015 Common Body of Knowledge Study, 2015 The IIA and The IIA Research Foundation. All rights reserved. No part of this data may be copied, reproduced or otherwise disseminated without explicit permission from The IIA.

72 2015 Audit Plans Continue to Diversify to Address Key Risks Corporate Governance 6% Other 9% Business Strategy 11% Operational 24% Fraud 4% Risk Mgt Effectiveness 12% Information Technology 8% Financial 10% Compliance/ Regulatory 15% Source: The Global Pulse of Internal Audit Survey Conducted in collaboration with the 2015 Common Body of Knowledge Study, 2015 The IIA and The IIA Research Foundation. All rights reserved. No part of this data may be copied, reproduced or otherwise disseminated without explicit permission from The IIA.

73 More Emphasis Needed to Audit at the Speed of Risk Only 48 percent rely on comprehensive risk assessments by internal audit 18 percent on management s risk assessments 26 percent on focused risk assessments When developing the internal audit plan: 21 percent develop once per year do not update 43 percent develop and update 1-2 times per year 18 percent develop and update 3 or more times Only 15 percent consider their plans highly flexible Only 21 percent continuously assess risks Source: The Global Pulse of Internal Audit Survey Conducted in collaboration with the 2015 Common Body of Knowledge Study, 2015 The IIA and The IIA Research Foundation. All rights reserved. No part of this data may be copied, reproduced or otherwise disseminated without explicit permission from The IIA.

74 Talent Profiles are Continuing to Evolve SKILLS BEING RECRUITED RATE 1 Analytical/critical thinking 66% 2 Communication 53% 3 Risk Management Assurance 42% 4 Accounting 42% 5 IT - General 38% 6 Industry Specific Knowledge 37% 7 Data Mining and Analysis 33% Source: The Global Pulse of Internal Audit Survey Conducted in collaboration with the 2015 Common Body of Knowledge Study, 2015 The IIA and The IIA Research Foundation. All rights reserved. No part of this data may be copied, reproduced or otherwise disseminated without explicit permission from The IIA.

75 The Emphasis on Quality Assurance is Lagging How developed is your Quality Assurance and Improvement Program? 28% non-existent or ad hoc 34% in the process of development 33% well-defined; including an external assessment Source: The Global Pulse of Internal Audit Survey Conducted in collaboration with the 2015 Common Body of Knowledge Study, 2015 The IIA and The IIA Research Foundation. All rights reserved. No part of this data may be copied, reproduced or otherwise disseminated without explicit permission from The IIA.

76 Conclusion - Next Valuable tool Not too difficult to extend IIA Greece beyond its logical position See you in New York, 16-17July 2016