www.pwc.com/th
IIA Annual Seminar 2012
Aligning Internal Audit to
deliver value
9 August 2012
Agenda
•
The rising importance of risk management
•
Stakeholder expectations of internal audit
•
Rising to the new floor
•
What this means for your business
•
Questions
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 2
The rising importance of
risk management
The rising importance of risk management
In todays’s ever-shifting risk landscape, internal
audit can’t settle for simply reacting to events;
instead, it must adopt a strategic mindset that is
responsive to risks and helps ready organizations
for new threats and opportunities
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 4
The 15 most cited risks
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 5
How well organizations manage each of these
risks
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 6
Least and most well-managed risks by industry
groups
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 7
Importance of internal audit’s contribution to
monitoring each risk
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 8
Stakeholder
expectations of internal
audit
Stakeholder expectations of internal audit
As the risk landscape shifts rapidly, CAEs and
stakeholders must work to stay aligned both on
the impact of this risk to their organization and on
the specifics of the role internal audit should play.
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 10
Risks that receive too little attention from internal
audit
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 11
Risk areas in which stakeholders and CAEs
want/plan to add internal audit capabilities
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 12
Three lines of defense
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 13
Rising to the new floor
Rising to the new floor
Risks have shifted and expectations have risen,
and all internal audit functions need to rise to this
new floor; providing assurance on a broader range
of critical risks
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 15
Rising to the new floor
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 16
Meet the challenge of a higher floor
• Think and act
strategically
• Understand the
business
• Build trust through
ongoing dialogue
• Leverage the second
line of defense
• Leverage specialists
• Simplify reporting,
make it consumable
• Align resource
allocations
Aligning internal audit to deliver value
PwC
• Deliver advice and
best practices
• Connect the dots
9 August 2012
Slide 17
What this means for
your business
Internal audit functions need to meet higher
expectations, as the floor has risen
•
•
•
•
•
•
Align the scope of work and allocation of resources to the
organization’s most critical risks through comprehensive, top-down
risk assessments
Hold ongoing, robust dialogues with stakeholders
Leverage and coordinate with the organization’s other risk
management and compliance functions
Lend expertise to enable the organization to enhance its second line
of defense if it is not already robust
Provide stakeholders advice on risk s and controls that improve
business performance
Communicate complex matters in a clear, consumable fashion, with
summaries of recurring themes and deeper, interpersonal
interaction with stakeholders
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 19
Internal audit functions need to meet higher
expectations, as the floor has risen
•
Ensuring stakeholder sponsorship on the importance of the CAE
role and positioning the function
•
Ongoing dialogue stakeholders with a mindset of enabling the
business to function better
•
Face the talent and resource shortage challenge head on
With the risk landscape shifting under their feet, internal
audit functions must follow the same path, transforming and
strengthening the floor form which they operate and
becoming the partner stakeholders increasingly want and
expect
Aligning internal audit to deliver value
PwC
9 August 2012
Slide 20
Thank you
Should you need to discuss in more details, please contact;
Varunee Pridanonda
Partner – Governance, Risk and Compliance and Internal Audit Services
Office: 02 344 1282
Mobile: 081 645 0114
Fax: 02 286 4440
Email: varunee.pridanonda@th.pwc.com
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