Financial Accounting Advisory Services

Transcription

1 Financial Accounting Advisory Services Alignment of risk management, compliance, internal audit and internal control systems October 2014

2 Agenda 3 About EY 14 Contacts 16 Page 2

3 Harmonizing governance structures Page 3

4 Client issues Risk management system Internal audit system Board Executive management Business structure Business processes Business culture Compliance management system Internal control system Separate governance elements If any of the following questions are on your business agenda, EY can help: Is the interaction and integration within your current governance, risk and compliance process effective and efficient? Do all your employees have a consistent understanding of the term risk? Could undetected gaps in risk coverage leave your organization exposed? Are the reports provided to your senior management and board members valid and consistent? Could changes to your governance process increase the speed and quality of decisionmaking? Are your current governance systems and processes transparent? By conducting a structured assessment, EY can illustrate how effectively the governance elements and systems for an organization are integrated. Page 4

5 The need to integrate governance elements Board A harmonized system Goal setting and risk assessment Executive management Business structure Risk management and control Strategic risks Finance and reporting risks CMS RMS IRS IKS Operational risks Compliance risks Monitoring and improvement Improves the quality of information provided to executives and board members by implementing consistent reporting processes Reduces the workload for operating areas by ensuring a coordinated risk response Improves confidence in identifying risks by developing a process Reduces costs to avoid duplication by aligning processes Business processes Business culture Integrated governance elements The reliability and cost-efficiency of monitoring systems depend on the integration between risk management, the internal control system, compliance management and internal audit. Page 5

6 EY s approach We work with our colleagues across EY, including our assurance and advisory practices, to help you to assess the effectiveness and efficiency of your current governance system. Our approach: Structured and consistent three-step approach based on a comprehensive model Combination of qualitative and quantitative evaluation Derive recommendations, classified according to costs and benefits Generate robust results quickly + The results: Evaluation of the organization s current arrangements Show key areas for improvement and propose measures to optimize effectiveness and efficiency Can be used compare to benchmark data and identify good practice to optimize your risk mitigation and monitoring systems EY s assistance can significantly enhance the benefits of evaluation. Page 6

7 EY s approach The assessment is based on a comprehensive model that covers all elements of integrated governance, risk and compliance systems. 08 Controls Monitoring 01 Goals Guidelines 02 Four dimensions The three dimensions strategy, organization and processes, as well as the linking dimension interface, are the assessment elements and the basis of the assessment. Each dimension comprises three categories. 07 Risk Efficiency effectiveness Communication Committees Incentive systems Responsibilities Twelve categories Each dimension is composed of three assessment categories, each a major area of the management and monitoring system. Two indicators The two indicators effectiveness and efficiency are the assessment parameters. Page 7

8 EY s approach The three-step assessment approach The model builds the foundation for a three-step approach. This approach combines methodologies to generate results quickly Qualitative evaluation of status quo Quantitative valuation of status quo Results and recommendations Pre-assessment questionnaire and interviews Scoring within tool Standard report on assessment results By using a powerful tool-based assessment, we: Determine the effectiveness and efficiency of your organization s current governance system Detect gaps in risk coverage Identify potential for improvement Provide practical recommendations Page 8

9 EY s approach 1. Qualitative evaluation of status quo 1 Qualitative evaluation of status quo Pre-assessment questionnaire and interviews Conducted by EY based on documents you provide and interviews with members of your organization Systematic, standardized interview guideline covering all categories and dimensions Closed questions and defined rating scale support efficient approach Extract of tool Page 9

10 EY s approach 2. Quantitative valuation of status quo 2 Quantitative valuation of status quo Scoring within tool Efficient and systematic tool-based scoring that requires only a few entries Comprehensive guidance and support in interpretation of the data Both EY and the organization keep score independently so that internal and external perspectives can be compared Extract of tool Extract of tool Extract of tool Guidance based on detailed introduction and scoring description Efficient scoring methodology and a small number of entries required Comprehensive legend, including term definitions Page 10

11 EY s approach 3. Results and recommendations 3 Results and recommendations Standard report on assessment results EY processes overall results for each of the dimensions and categories A comprehensive interpretation of results and recommendations is provided Extract of tool Graphical representation of internal and external assessment results and their interpretation Page 11

12 What benefits can you expect? EY s assessment supports a comprehensive assessment and provides the basis for a structured approach of harmonization of the governance elements. The assessment can help you to: Identify gaps in your monitoring systems Expose inefficiencies and duplication Promote fast and high-quality decisionmaking Understand the internal and external perceptions Reveal potential for optimization Page 12

13 Why work with EY We have a multidisciplinary team, from across EY, with an established track record in designing, examining and improving governance processes across different countries. We bring detailed knowledge and comprehensive experience in: Our evaluation methodology Statistical evaluation and interview techniques Organizational structures, roles and responsibilities of governance systems Good practices and benchmarking EY s Corporate Governance Services team has facilitated governance process reviews for public and private organizations, ranging from medium-sized companies to multinational organizations. Page 13

14 About EY Page 14

15 Your regional EY network Africa Angola, Botswana, Cameroon, Chad, Congo, Democratic Republic of Congo, Equatorial Guinea, Ethiopia, Gabon, Ghana, Guinea, Ivory Coast, Kenya, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Nigeria, Rwanda, Senegal, Seychelles, South Africa, South Sudan, Tanzania, Uganda, Zambia, Zimbabwe Belgium and the Netherlands Germany, Switzerland and Austria Commonwealth of Independent States Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Russia, Ukraine, Uzbekistan Central and Southeast Europe Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Kosovo, Latvia, Lithuania, FYR of Macedonia, Malta, Moldova, Montenegro, Poland, Romania, Serbia, Slovakia, Slovenia, Turkey France, Maghreb and Luxembourg Algeria, France, Luxembourg, Monaco, Morocco, Tunisia Financial Services Organizations Belgium, Channel Islands, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Switzerland, the UK India Bangladesh, India Mediterranean Italy, Portugal, Spain Middle East and North Africa Afghanistan, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Oman, Pakistan, Palestinian Authority, Qatar, Saudi Arabia, Syria, United Arab Emirates Nordics Denmark, Finland, Norway, Iceland, Sweden The United Kingdom and Ireland The UK, the Isle of Man, the Republic of Ireland EY Global Countries worldwide 150 Employees worldwide 175,000 US$ revenue ( ) 25.8b Page 15

16 Contacts Page 16

17 Financial Accounting Advisory Services contacts Daniela Mattheus Ivan Violetto Finn Espen Ole Hlafpap Page 17

18 EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com EYGM Limited. All Rights Reserved. EYG no. AU2700 EMEIA Marketing Agency ED None In line with EY s commitment to minimize its impact on the environment, this document has been printed on paper with a high recycled content. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. ey.com