This document discusses how StrategyDriven can help companies develop risk assurance maps to improve oversight and reduce costs. Risk assurance maps relate corporate risks to business processes and the oversight activities that monitor them. This reveals gaps and redundancies, allowing unnecessary oversight to be eliminated. StrategyDriven has helped clients identify over $100,000 in redundant oversight activities and can work with companies to develop customized risk assurance maps.
Ten Organizational Design Models to align structure and operations to busines...
Reduce Costs Through Risk Assurance Mapping
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A VETERAN OWNED SMALL BUSINESS
StrategyDriven TM
Improving Oversight and Reducing Costs
Through Risk Assurance Mapping
www.StrategyDriven.com/risk-assurance-maps
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StrategyDriven Advisory Services
StrategyDriven advisors serve the global Energy Industry
United States
Canada
Brazil
Peru
El Salvador
* Companies served over the course of our advisor’s careers and not necessarily through StrategyDriven.
StrategyDriven advisors identified $100+ thousand in unnecessarily redundant
oversight activities after closing numerous assurance gaps at four companies!
Just imagine how we might help improve your oversight program.
*
United Kingdom
Norway
Switzerland
Hungary
Cayman Islands
United Arab Emirates
Angola
Nigeria
Australia
Japan
Thailand
Singapore
India
Industry Experience
Power & Utilities
Oil & Gas
Healthcare
U.S. Navy
U.S. Army
Not-For-Profit
Global Client Experience
3. Improving Oversight and Reducing Costs Through Risk Assurance MappingPage 3 StrategyDriven TM
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Corporate Oversight Opportunities
StrategyDriven’s Risk Assurance Maps reveal numerous oversight gaps
Common High Priority Oversight Assessment Gaps
Succession Planning
Workforce Management – retention, retirement and
replacement strategy
Supply Chain Management – contract management
Work Management – Supply Chain process interface
effectiveness (Inventory Management)
Security – physical and cyber
Oversight organizations provide independent, objective assurance and consultation for
designated portions of the business in order to monitor risk, add value, and improve the
overall operations. These organizations achieve these objectives through systematic,
disciplined evaluation of and consultation for the:
Design and operating effectiveness of risk management processes
Management/Governance of ‘key’ risks including the risk assessment process
Reporting of assessed risk and control conditions
Even if heavily regulated, some companies may not provide substantial internally
performed or sponsored oversight of several functions important to managing the
business’s top tier risks. Consequently, corporate oversight organizations have the
opportunity to add significant business value by identifying and closing these gaps.
Business Continuity Planning – including extended facility
emergency event management
Business Management – planning, budgeting, and performance
monitoring
Large capital project development strategy and implementation
program
Consolidated assessment of internal and external audit findings
4. Improving Oversight and Reducing Costs Through Risk Assurance MappingPage 4 StrategyDriven TM
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Corporate Oversight Opportunities
StrategyDriven’s Risk Assurance Maps reveal numerous oversight redundancies
Management
Assurance
Board of Directors External
Stakeholders
Common Assurance Providers
Internal Audit
Quality
Assurance
/ Self-
Assessments
Enterprise
Risk
Management /
Compliance
Groups
Areas of
Potential
Inefficiencies
Conventional Ownership of Assurance Activities
Enterprise Risk
Management
(ERM) /
Compliance
Groups
Quality
Assurance
Management
Self-Assessments
Internal Audit
Functional area
oversight sub-
committees
Safety Review /
Oversight Boards
Independent
Auditors
Government
Regulators
Industry
Organizations
Trade
Associations
Conventionally assigned assurance coverage responsibility can lead to significant
redundancy of effort. This inherent inefficiency often goes unresolved because internal
oversight groups infrequently coordinate their activities.
Illustrative
5. Improving Oversight and Reducing Costs Through Risk Assurance MappingPage 5 StrategyDriven TM
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Risk Assurance Mapping
StrategyDriven relates corporate risks to process execution and oversight
Risk assurance mapping enables visualization of the relationships between enterprise risks
and their associated processes. Concurrently, it reveals the degree of assurance oversight
and performance metric monitoring applied to these processes. Such maps foster greater
collaboration between an organization’s multiple oversight and line organization groups;
enabling closure of oversight gaps and helping to alleviate low-value, redundant
assessment activities and their associated costs.
Company Risk Universe Risk Scores
Process Universe
Internal / External
Oversight & AssuranceRelationship
Illustrative
Individual Risk Mitigators
Note: A full-scope Risk Assurance Map is shown. Each section within the map is scalable to the organization’s needs. Some features /
components of the map can be eliminated, as desired.
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Risk Assurance Mapping
Aggregation of oversight results reveals the organization’s residual risk profile
Once completed, the results of individual oversight activities are added to the risk
assurance map. Aggregation of these findings reveals the overall quality of process
performance and controls. Combining the process quality scores associated with individual
risks and then sequentially rolling-up individual, business unit, and categorical residual risk
scores yields the organization’s overall residual risk profile.
Residual Risk ScoresProcess Assessment Quality Scores
Relationship
Internal / External Oversight & Assurance
Illustrative
References Internal / External Performance
Metrics
Aggregated Individual Process Events
Note: Use of DevonWay’s Risk Map application (optional) integrated with the organization’s other enterprise platforms can substantially
automate Risk Assurance Map updating.
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Benefits of Risk Assurance Mapping
StrategyDriven Risk Assurance Maps drive substantial organizational benefits
Risk assurance mapping reveals numerous opportunities to enhance assurance and lower
costs through the elimination of oversight gaps and low-value and redundant activities.
Furthermore, it fosters increased communications between the executive leadership and
oversight groups; enhancing understanding, improving coordination, and standardizing
approaches to the organization’s assurance activities.
Beneficial Oversight Organization Impacts
Improves oversight organization effectiveness:
- Focuses oversight resources on the performance of
risk-driven assessments
- Provides near continuous risk and process monitoring
through the use of existing performance metrics
- Identifies areas where assessment coverage could
be enhanced
- Reveals opportunities to eliminate low-value
assessment activities
- Coordinates the assurance activities of the
organization’s oversight groups supporting elimination
of redundant activities
- Informs the leveraging of assessment performed by
other internal groups
Promotes collaboration between executive
management and oversight organizations
Increases the credibility of oversight organization
within the business
Provides for near and long-term assessment
schedule planning
Enables identification of near and long-term
assessor knowledge, skills, and experience needs
Organizational Value Proposition
Assists the Board and executive management in understanding the
organization’s residual risk profile and assurance process
Helps levelize the assessment-related burdens placed on operating groups
Establishes standard risk definitions and assurance frameworks
Provides a concise, organized portrayal of regulatory and industry guidelines
compliance to government inspectors and external assessors
Paradigm shift
Old
Corporate oversight organizations assess performance autonomously
New
Internal oversight organizations coordinate their efforts to maximize assurance
coverage and value while minimizing effort
Oversight personnel perform assessments coordinated with those of other
assessment groups and provide augmenting knowledge and skills to their
assessment teams
Performance metrics are used to actively monitor risks between assessments
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Risk Assurance Map Development
How StrategyDriven helps clients develop a tailored assurance framework
Plan & Prepare Structure & Collect Review & Analyze Conduct Briefings
Oversight Activity Levelizing
Tools
Risk Assurance Map
Development and Maintenance
Instructional Guide
Develop a task specific, resource loaded project plan and submit requests for needed
data and meetings
Align the risk assurance map framework to the specific organization and gather risk
assessments, oversight activity schedules, and performance metrics
Interact with corporate and business unit management and staff to validate risk
assurance map accuracy and gain buy-in
Present risk assurance map assessment findings and gaps including associated
leading practices
Detailed Risk Assurance Map
Framework
Board / Executive Level Risk
Assurance Map Framework
Cascading Enterprise Risk
Catalog
9. Improving Oversight and Reducing Costs Through Risk Assurance MappingPage 9 StrategyDriven TM
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Contact
For more information on how to develop your Risk Assurance Map, contact…
Nathan Ives
Principal
StrategyDriven Enterprises, LLC
(678) 313-0150
nathanives@strategydriven.com
or visit us on the web at:
www.StrategyDriven.com/risk-assurance-maps