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Roy Millard - the basics and latest thinking on Assurance presentation

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Roy’s presentation looked at assurance, what it is and is not and some latest thinking. Roy explained that there are many definitions of assurance, but the essence is about providing confidence that a project will deliver. He quoted Demming: ‘in God we trust, all others bring data!’ Decision makers need quality information to aid decision making.

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Roy Millard - the basics and latest thinking on Assurance presentation

  1. 1. Assurance – the basics, and latest thinking Presentation by Roy Millard, Senior Audit Manager, Transport for London, and Chairman of APM Specific Interest Group on Assurance
  2. 2. Questions: • What is [and isn’t] assurance? • What is good [and bad] assurance? • How to overcome the barriers • How to decide what to assure, and what not • How to avoid over-assurance • Work of the Assurance SIG 18 Oct 06 2
  3. 3. What is assurance? 18 Oct 06 3 assurance n. Emphatic declaration, guarantee; self-confidence, assertiveness; insurance esp. of life; certainty. (Source: The Pocket Oxford Dictionary.) assurance noun 1.the act of assuring 2.the state of being assured; sureness; confidence; certainty 3.something said or done to inspire confidence, as a promise, positive statement, etc.; guarantee (Source: www.yourdictionary.com) • P3 assurance The process of providing confidence to stakeholders that projects, programmes and portfolios will achieve their scope, time, cost and quality objectives, and realise their benefits. (Source: APM) "Glamour is assurance. It is a kind of knowing that you are all right in every way, mentally and physically and in appearance, and that, whatever the occasion or the situation, you are equal to it.” - Marlene Dietrich (actress, 1901-1992) “One unerring mark of the love of truth is not entertaining any proposition with greater assurance than the proofs it is built upon will warrant.” - John Locke (philosopher, 1632-1704) “In God we trust. All others, bring data.” - W E Deming (academic,1900-1993) “Assurance is two-thirds of success.” - Gaelic proverb
  4. 4. 18 Oct 06 4 “I need assurance because.... ...I need to know that everything is under control”. ...I need to know whether what I am being told is correct”. ...I need to be confident that I am going to get what I want”. ...I need to know whether the project is going to finish on time and within budget”. ...I need to know if things are going horribly wrong and whether I should can the project!”.
  5. 5. Where does assurance come from? Internal Audit External Audit Quality Assurance Health & Safety OGC GatewayTM Independent Assurance ReviewsPMO/PMCoE Control Self Assurance NAO Standards Systems Project Audits Contract Audits Peer Reviews
  6. 6. And who receives this assurance? Internal Audit External Audit Quality Assurance Health & Safety OGC GatewayTM Independent Assurance ReviewsPMO/PMCoE Control Self Assurance NAO Standards Systems Project Audits Contract Audits Peer Reviews Audit Committees Sponsors MDs & Directors Project Boards / SROs Programme Boards Governing Bodies Shareholders Public & media
  7. 7. Characteristics of good assurance • Principles and Standards (ref: APM Guide to Integrated Assurance)  Proportionality  Risk based planning  Independence  Competence  Engagement planning  Documentation of evidence  Reporting  Action  Follow up  Spreading good practice  Quality control 18 Oct 06 7
  8. 8. Assurance information is only useful if it helps you to make sensible decisions! 18 Oct 06 8 How do you avoid this?
  9. 9. Winning hearts and minds • Setting an overall organisational context – Who wants assurance and why? – How will it be used? – How does it relate to other activities? • Overcoming resistance – We’re too busy at the moment – We can’t afford the time/cost/disruption/etc. – What’s the point/value? • Doing it as efficiently & effectively as possible – Integrated approach 18 Oct 06 9
  10. 10. ORGANISATION’S RISKS First Line of Defence Outcome: Control of risks ORGANISATION’S RISKS CONTROLS Application of a Management System, comprising policies, procedures, processes, standards, etc. ASSURANCE Management Second Line of Defence Outcome: Confirmation of control of risks (Verification) First Line of Defence Outcome: Control of risks ORGANISATION’S RISKS CONTROLS Application of a Management System, comprising policies, procedures, processes, standards, etc. COMPLIANCE Management assurance, comprising monitoring, checks and audits by Risk Management, Quality Assurance, PMOs, etc. ASSURANCE ASSURANCE Management Management Second Line of Defence Outcome: Confirmation of control of risks (Verification) First Line of Defence Outcome: Control of risks Third Line of Defence Outcome: Strategic overview of system of control ORGANISATION’S RISKS CONTROLS Application of a Management System, comprising policies, procedures, processes, standards, etc. COMPLIANCE Management assurance, comprising monitoring, checks and audits by Risk Management, Quality Assurance, PMOs, etc. INDEPENDENT REVIEW Assurance through independent reviews by Internal Audit, External Audit (e.g. NAO), independent peers, or external scrutiny. ASSURANCE ASSURANCE ASSURANCE Management Management Board & external stakeholders 18 Oct 06 10 3 lines of defence model for assurance
  11. 11. Assurance Map Sources of assurance Source 1 Source 2 Source 3 Source 4 Source 5 Source 6 Source 7 Source 8 Risk 1 Risk 2 Risk 3 Risk 4 Risk 5 Risk 6 Assurance map
  12. 12. Assurance Map Sources of assurance Source 1 Source 2 Source 3 Source 4 Source 5 Source 6 Source 7 Source 8 Risk 1 ● ■ ● ■ ● ■ ● ■ Risk 2 ● ■ ● ■ Risk 3 ● ■ ● ■ ● ■ Risk 4 ● ■ ● ■ Risk 5 ● ■ ● ■ ● ■ Risk 6 ● ■ ● ■ ● ■ Assurance map
  13. 13. Assurance Map Sources of assurance Source 1 Source 2 Source 3 Source 4 Source 5 Source 6 Source 7 Source 8 Risk 1 ● ■ ● ■ ● ■ ● ■ Risk 2 ● ■ ● ■ Risk 3 ● ■ ● ■ ● ■ Risk 4 ● ■ ● ■ Risk 5 ● ■ ● ■ ● ■ Risk 6 ● ■ ● ■ ● ■ Assurance map
  14. 14. Assurance SIG 18 Oct 06 14 • There are four work streams currently under way or in the process of being born: – Integrated assurance • Developing approached to collaborative working between assurance providers (Guide published in 2014) – Project Auditing • Sharing approaches and experiences in project auditing, and developing best practice guidance – Measures for Assuring Projects • Investigating and developing guidance on measures that can be used to gain assurance – Assurance of Agile projects • Development of guidance to applying assurance principles in fast-moving Agile environments • Plus, we have three others at the idea stage: – Assurance of organisational change – The Business Case for assurance – Maturity modeling for assurance
  15. 15. 18 Oct 06 15http://www.apm.org.uk/news/new-apm-book-release-guide-integrated-assurance-video#.U427QKz1DRk
  16. 16. Questions • roymillard@tfl.gov.uk – TfL-related • ppasig@apm.org.uk – general assurance SIG • roymillard.asig@gmail.com – specific assurance SIG • http://www.apm.org.uk/group/apm-assurance- specific-interest-group 18 Oct 06 16 Questions & further information
  17. 17. Remember: assurance is glamorous! 1 December 2010 17 "Glamour is assurance. It is a kind of knowing that you are all right in every way, mentally and physically and in appearance, and that, whatever the occasion or the situation, you are equal to it.” - Marlene Dietrich (actress, 1901- 1992)

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