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Much has been written about assurance, but mainly by those who provide it - the professionals such as internal auditors, accountants and information security technologists for the purpose of advancing their professional practices. Less is written for or by those in governance who need it for the effective discharge of their responsibilities. It is time to rethink assurance beyond its usual functional boundaries, to focus on what matters to the business and how discussions in the board room can be better supported by more joined up assurance. This book will provide practical guidance for those who need that support and for others providing it.

The need for assurance is never more acute than in times of turbulence and uncertainty. The events following the financial market crisis demonstrate the catastrophic consequence of risk taking that exceeds the board’s appetite, and of not joining up risk intelligence for sound decision making. Boards and senior management alike consistently seek the ’one truth’ about risk exposures and strength of controls but are continuing to grapple with the challenge. Much has been written about assurance and the governance of risks, but mainly by those who provide it - such as internal auditors, accountants and information security technologists - for the purpose of advancing their professional practices. Less is written for or by those in governance who need assurance for the effective discharge of their responsibilities. Regulations do not usually go beyond acknowledging its importance and rely on those in the boardroom to get it right. Studies have consistently shown the link between weak corporate governance and corporate failures. The lack of reliable assurance has often been a factor. Assurance, as an integral part of corporate governance, cannot be taken for granted. It requires conscious action across the organisation. It is time to rethink assurance beyond its usual functional boundaries, to focus on what matters to the business and how discussions in the board room can be better supported by more joined up assurance. This book provides practical guidance for those who need that support as well as those who deliver assurance.

Recenzijas

'Understanding the principles of joined up and coordinated risk management and internal control is increasingly key to becoming an effective director, member of senior management or head of internal audit and related assurance functions in the corporate and public sectors. This book explains the background cogently, draws on much current thinking from around the world and gives useful practical insights about effective processes. Vicky Kubitscheck writes intelligently, identifies her sources well and draws on her own considerable experiences in this important field. - Martyn Jones, President of the Institute of Chartered Accountants England and Wales

'Risk assessment and management of risk are two key activities at board, management and operational levels in all organisations. In this analysis of the processes of risk-taking the author has cleverly woven her knowledge and experiences of the practices of risk management and assurance, creating a unique integrated framework of guidance for risk oversight and risk-taking. Understanding and using this framework is a must for all seeking governance excellence and for those who provide assurances on governance - management, auditors and regulators. - Jeffrey Ridley, University of Lincoln, UK and First Past President of now Chartered Institute of Internal Auditors, United Kingdom and Ireland. Author of Cutting Edge Internal Auditing

With increased regulatory focus on how ethics, culture and governance are connected in our organisations, this book offers a highly developed framework and practical tools to ensure all the bases are covered while building a join-up response. Increased regulation also risks resources being wasted by over-lapping or misdirected approaches. In this book, we see a particularly refined coherent approach, utilising specialist expertise and current best practice. - David Jackman, Director of The Ethical Space and Chair of the Ethics Foundation. Formerly Head of Business Ethics at the Financial Services Authority, UK

I have worked with Vicky Kubitscheck for a number of years and have found her insights invaluable. I highly recommend this book which gives everyone an opportunity to understand better the highest standards of corporate governance. - Mike Urmston, Non-Executive Director of Phoenix Life, Reassure, Ageas Insurance and Police Mutual. Member of Regulatory Decisions Committee at FCA, UK

List of Figures
xi
List of Tables
xiii
Acknowledgements xv
Glossary of Key Terms xvii
Foreword xxiii
Preface xxv
PART I INTRODUCTION - THE CASE FOR INTEGRATED ASSURANCE: GOVERNANCE IN THE NEW ORDER
1 Corporate Governance on Trial
3(14)
Corporate Governance - The Dog that didn't Bark?
3(4)
Defective Information, Intelligence and the 'One Truth'
7(3)
Modernising Corporate Governance in the New Order
10(2)
To Conclude this
Chapter ...
12(1)
Key Points from this
Chapter
13(1)
Endnotes
14(3)
2 Risk Taking and Oversight
17(16)
Nature of Excessive and Blind Risk Taking
17(2)
Putting Risk Governance at the Heart of Corporate Governance
19(3)
Challenges in Risk Oversight Widen Cracks in Governance
22(3)
Being Alert to Limitations in Risk Information
25(4)
To Conclude this
Chapter ...
29(1)
Key Points from this
Chapter
30(1)
Endnotes
31(2)
3 Assurance against Excessive Risk Taking
33(10)
Intrinsic Link between Attitude to Risk Taking and Decision Making
33(4)
Managing Risks within the Board's Appetite
37(1)
Risk Oversight: Compliance with the Board's Risk Appetite
38(1)
To Conclude this
Chapter ...
39(1)
Key Points from this
Chapter
40(1)
Endnotes
41(2)
4 Openness and Transparency
43(10)
Transparency beyond Regulatory Compulsion
43(3)
Malfunctioning Risk Compass Obscures Board Oversight
46(1)
Avoiding Blind Trust and being Blindsided
47(3)
To Conclude this
Chapter ...
50(1)
Key Points from this
Chapter
50(1)
Endnotes
51(2)
5 Accountability
53(12)
Personal Accountability - Doing the Right Things versus Doing Things Right
53(2)
Corporate Accountability
55(1)
The Link between Assurance and Accountability
56(3)
Regulatory Spotlight on Personal and Corporate Accountability
59(2)
To Conclude this
Chapter ...
61(1)
Key Points from this
Chapter
62(1)
Endnotes
63(2)
6 Rethinking Assurance
65(14)
Assurance - Fact or Emotion
65(2)
Aligning Assurance with Expectations
67(4)
Maintaining Confidence in the Assurance Transaction
71(3)
To Conclude this
Chapter ...
74(1)
Key Points from this
Chapter
74(1)
Endnotes
75(4)
PART II RISK ASSURANCE BEYOND BOUNDARIES
7 Seeking the Holistic Risk and Assurance Picture
79(12)
A Plan to Inspire Confidence across the Assurance Food Chain
79(3)
The Need for a Joined Up and Holistic Risk Picture
82(3)
Seeking Risk Intelligence - When More is Less
85(2)
Working Beyond Functional Boundaries to Gain Collective Intelligence
87(1)
To Conclude this
Chapter ...
88(1)
Key Points from this
Chapter
89(1)
Endnotes
89(2)
8 Assurance in a Three Lines of Defence Model
91(12)
Key Principles of the Three Lines of Defence Model
91(3)
Interpreting the Three Lines of Defence Model
94(2)
Common Debates in Applying the Three Lines of Defence Model
96(4)
To Conclude this
Chapter ...
100(1)
Key Points from this
Chapter
100(1)
Endnotes
101(2)
9 The Current Faces of Integrated Assurance
103(14)
Different Interpretations of Integrated Assurance
103(2)
Integrated Assurance for a Particular Portfolio of Risk
105(4)
Integrated Assurance for Risks across the Enterprise
109(1)
Integrated Assurance from the Perspective of an Assurance Provider
110(3)
To Conclude this
Chapter ...
113(1)
Key Points from this
Chapter
114(1)
Endnotes
114(3)
10 Defining a Framework for Integrated Assurance
117(18)
What Good Looks Like from the Lens of the Board
117(2)
Defining the Integrated Assurance Framework
119(1)
Applying Integrated Assurance at Three Levels
120(4)
Key Components of an Integrated Assurance Framework
124(5)
To Conclude this
Chapter ...
129(1)
Key Points from this
Chapter
129(2)
Endnotes
131(4)
PART III IMPLEMENTING INTEGRATED ASSURANCE
11 Integrated Risk Assurance Mapping
135(8)
Introduction
135(1)
Key Steps to Mapping Risk Assurance
136(5)
To Conclude this
Chapter ...
141(1)
Key Points from this
Chapter
142(1)
12 Integrated Assurance at Level 1
143(8)
Introduction
143(1)
Defining the Assessment Criteria at Level 1 Application
143(2)
Assurance Mapping at Level 1
145(3)
Analysis and Reporting at Level 1
148(1)
To Conclude this
Chapter ...
149(1)
Key Points from this
Chapter
150(1)
13 Integrated Assurance at Level 2
151(10)
Introduction
151(1)
Characterising Quality of Risk Assurance Activity
151(2)
Defining the Assessment Criteria at Level 2 Application
153(3)
Evaluation and Practical Application of Level 2 Assurance Map
156(2)
To Conclude this
Chapter ...
158(1)
Key Points from this
Chapter
159(2)
14 Integrated Assurance at Level 3
161(20)
Introduction
161(1)
Stage One - Assessing Confidence in Risk Assurance
162(10)
Stage Two - Promoting Shared Risk Intelligence
172(3)
Other Practical Applications at Level 3
175(2)
To Conclude this
Chapter ...
177(2)
Key Points from this
Chapter
179(1)
Endnotes
180(1)
15 Getting Started
181(22)
Introduction
181(1)
Key Question #1 What is the Nature of the Problem?
182(3)
Key Question #2 How Mature is Risk Management?
185(2)
Key Question #3 What is the Mindset of the Organisation?
187(3)
Key Question #4 What Resources and Expertise are Required?
190(2)
Key Question #5 What is the Scope of the Implementation?
192(5)
Specifying the Benefits
197(2)
Defining the Success Criteria
199(2)
To Conclude this
Chapter ...
201(1)
Key Points from this
Chapter
201(1)
Endnotes
202(1)
16 Key Implementation Challenges
203(14)
Introduction
203(1)
Challenge #1 Absence of a Universally Defined Framework
204(1)
Challenge #2 Maturity of Risk Management
205(2)
Challenge #3 Ownership
207(2)
Challenge #4 Availability of Appropriate Resources and Skills
209(1)
Challenge #5 Champion at the Top
210(1)
Challenge #6 Coordination and Collaboration
211(1)
To Conclude this
Chapter ...
212(1)
Key Points from this
Chapter
213(1)
Endnotes
214(3)
PART IV CASE STUDIES
Case Studies: Introduction
217(4)
Case Study 1 Audit Committee Approval of Audit Plans
221(4)
Case Study 2 Reviewing the Need for an Internal Audit Function
225(4)
Case Study 3 Optimising Risk Assurance in a Fast Growing Entity
229(4)
Case Study 4 Enhancing Risk Governance to Match Growth Ambitions
233(6)
Case Study 5 Optimising Risk Assurance in Line with Strategic Change
239(8)
Case Study 6 Sharpening and Simplifying Risk Governance and Assurance
247(8)
Case Study 7 A Deep Dive Risk Oversight for a Subsidiary
255(6)
Case Study 8 Spotlighting a Risk for Oversight and Assurance
261(6)
Case Study 9 Promoting Collective Risk Intelligence
267(6)
Bibliography 273(8)
Index 281
Vicky Kubitscheck is an expert in risk governance, with over 30 years' experience in financial services working with boards and executive management to develop and establish systems of risk management and governance in response to evolving regulatory and strategic business requirements. She was described as one of the most original and thorough thinkers in the risk management world by Robert Bruce, journalist and ex-editor of Accountancy Age. The book reflects her practical experience as an advisor at board level and from her senior umbrella roles in risk, compliance and audit at global organisations such as AEGON and AXA. Vickys current portfolio includes being a nonexecutive director of a private bank, Chief Risk Officer and Compliance Director at Police Mutual Group, the UKs largest affinity friendly society, and a board advisor. A Fellow of both the IoD and Institute of Internal Auditors, Vicky is also the Chair of the Insurance Internal Audit Group and sat on the FRC advisory group set up to consult on its integrated governance code. She has contributed to books and written professional guidance. Her publications include Risk management: finding the value within, Business dis-continuity - a risk too far and CSA in a financial services organisation (Balance Sheet).