Wolters Kluwer has published a new report ‘Paving the Way to Integrated Assurance: A Proactive Approach’. Based on a global survey of 850 audit and assurance professionals, the report highlights the need for sustainable approaches to breaking down silos within risk management and assurance functions, which can result in inefficiencies, duplicative efforts, and incomplete reporting.
Key findings from the survey include:
- Only 16% of organizations have aligned their risk management efforts effectively with clear communication across their functions,
- 40% of organizations struggle with duplicative assurance efforts, and 64% maintain multiple risk libraries,
- Over half (56%) indicated a ‘strong’ or ‘critical’ need for greater alignment, communication, coordination, and collaboration.
Integrated assurance isn’t just a concept. It’s an essential approach for organizations to achieve clarity in how risks are managed and reported in order to enable informed decision making. Organizations that invest in advanced technologies, drive coordination and alignment and empower leadership from internal audit will be better positioned to understand, align and act on their risk management and assurance strategies.
Jim Pelletier, Lead Product Manager at Wolters Kluwer TeamMate
The report highlights:
Adoption of the Three Lines Model: 93% of organizations have adopted the Three Lines Model to some extent, reflecting its near-universal acceptance and the value it brings in delineating the critical roles played by each of the three lines.
Partial/incomplete versions of the truth: Only 16% of respondents feel their risk management efforts are ‘clear and fully aligned’. At the same time, 31% lack a common risk taxonomy and 57% have different risk rating methodologies. This can lead to fragmented risk and assurance information with multiple versions of the truth. Consistent, unbiased evaluations of enterprise risk are critical in enabling informed decision-making by boards and executive leadership.
Assurance fatigue and the impact on the bottom line: 40% of respondents report challenges with duplicative assurance efforts. In addition, the majority aren’t coordinating their assurance activities (61%) and are managing multiple risk libraries in their organization (64%). The lack of coordination causes inefficiency, particularly across the second and third lines. This places a greater burden on the first line which can draw focus from their primary commercial and operational responsibilities.
Need for greater collaboration: the survey indicates a strong need for improved communication, coordination, and collaboration, with 56% of respondents highlighting a ‘strong’ or ‘critical’ need for change. Agile and aligned collaboration and communication is a vital driver in enabling and accelerating organizational response when new risks emerge.
