Selling Your Recommendations

Presented by:Lindsay Mercer

ISACALondon

22 November 2001

Selling your recommendations

WHY?

Selling your recommendations

Why would you want to?

What’s your culture?

Empowered Directed

Trust Control

Actions Recommendations

Where are you?

What’s your role?

Actions Recommendations

Where are you?

IndependentAssurance

EmbeddedMonitor

Selling your recommendations

Why should you have to?

What everyone wants! goal congruent culturally sympathetic well designed risk sensitive cost effective efficient operating RISK MITIGATION

Selling your recommendations?

Most auditors can’t give theirs away!

What’s the problem?

Finding wrong irrelevant

Solution wrong not cost effective

Culturally incompatible WIFM?

Question

all cheques signed by 2 directors bank reconciliations done daily invoices matched with order and GRN

before payment strict authorisation limits monthly management accounts

Are the following strong controls? -

Business risks are risks that threaten the achievement of business objectives

What is a business risk?

Finding

Solution 1

Objective

Criterion

Cause Condition

Effect

Recommendation

Deficiency finding components

condition - what’s wrong criterion - what should be happening and why cause - what is really causing the problem effect - what is the impact on the business (£) recommendation - how to correct the cause action - management’s commitment

Des

ign

ApplicationBad

Go

od

Good

OKJFDI

Design & do!

!

Solution 2

Solution – cost effective?

Spend a £ to save a p?

Cracking walnuts with sledgehammers?

Addressing the right axis?

LIKELIHOOD

CONSEQUENCE

5

4

3

2

1

1 2 3 4 5Lo

Hi

HiLo

Hi

Hi

Addressing the right axis?

Pre

ven

tati

ve

Detective

Cultural incompatibility

hierarchical collegiate commanding empowered doubting trusting incompetent competent blame no-blame closed open defensive learning selfish sharing IA knows best management

knows best

Trad New

Cultural incompatibility

Parent

Child

Colleague

Parent

Child

Colleague

Auditor Auditee

Transactional analysis view

better side cheaper/more

efficient better achievement

of objectives help fulfill

responsibilities

self interest makes my life easier makes me look

better makes me more

money employment

enhancing keeps me out of jail

WIFM?

Making your rec’s irresistible

Do you really want to?

organisation’s culture RM maturity your role

If you really must!!!!!!!!!!

get your fieldwork right relate to business objectives address the cause not the symptom be proportionate & realistic think “victim” - WIFM? hearts & minds or ………………..?

Selling Your Recommendations

Presented by:Lindsay Mercer

ISACALondon

22 November 2001