Next-Gen Gap Assessment and Benchmarking
The CAE asked the Protiviti team to perform a capability maturity assessment leveraging the Protiviti next-gen IA model, including the development of a road map of initiatives to drive an increased level of maturity and value back to the organisation. The CAE sought measurement of her department’s maturity within each next-gen IA component and a comparison to healthcare industry peers. She also pressed for comparisons to top-performing internal audit organisations from the financial services industry, which tends to be a leader in internal audit operational excellence.
To facilitate the assessment, the CAE supplied past deliverables like committee charters, external quality assessments and audit reports to enable a thorough understanding of the IA group’s current state. Stakeholders in the organisation were key partners in formulating observations and recommendations for improvement, as well as assessing the investment of capital and effort to implement potential solutions. The effort culminated in planning specific actions and initiatives into a road map of improvements to increase maturity.
- Governance initiatives included an updated statement of strategic vision with greater focus on delivery of value, efficiency and stakeholder relationships.
- Talent management enhancements included rotation of resources to compensate for scarce skill sets, and recognition programs to encourage critical cultural behaviors.
- Methodology enhancements included enriching the content and timeliness of current audit reports.
Long term (over a three-year horizon):
- Enabling technology initiatives included expanding capabilities in data and analytics and leveraging the enterprise’s existing technology investment to build RPA and AI capabilities for internal audit.
- Methodology enhancements included enhancing audit processes with Agile concepts.
- Other methodology enhancements included developing continuous monitoring activities for top risk areas to take advantage of investments in analytics and other applications reporting capabilities and to provide increased value back to the business.
- Training initiatives included understanding of next-gen concepts and innovative thinking, and leveraging learnings from peer institutions to accelerate progress.
The Benefit of Foresight
The road map was completed just prior to the onset of the coronavirus pandemic. By the time the organisation was feeling the pandemic’s effects, IA had already achieved significant improvements in data analytics, risk assessment, and audit reporting. The effort proved especially timely in two areas:
- The talent pool near the client’s headquarters was neither abundant nor diverse. A remote workforce mentality, adopted recently by the client to adjust to the pandemic, enabled a broader recruiting effort — just in time to leverage the gains in next-gen IA methodology.
- As the enterprise began to feel the pandemic’s impacts, a more agile risk assessment and planning approach helped adjust existing audits based on risk prioritisation and readiness to undertake the work, with a focus on audit value.
Our client’s drive to improve operations led them to explore next-gen IA methodologies and tools, which led to just-in-time changes to processes, positioning the healthcare nonprofit organisation to perform well in unforeseen pandemic conditions. When circumstances permit, the road map will enable rapid resumption of their quest for audit excellence.