APM presents... AssuranceSession led by

Roy Millard,Senior Audit Manager, Transport for London, and

Chairman of APM Specific Interest Group on Assurance&

Mark Reilly,

Auditor, Transport for London, andAPM Specific Interest Group on Assurance

What will we do today?

• Overview of assurance

• Thinking time:– What do you know and think about assurance?

• What can you take to your business?

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Who am i?

• Fellow of APM and Member of IET

• Over 30 years experience of engineering projects in PPP, PFI, partnering, joint venture, consortia and conventional contracting environments.

• Project engineering, risk management, project management and assurance.

• 1983-2002 – Racal / Thales & subsidiaries. Military & civil radio communications systems.

• 2002-2014 – Transport for London. Leading assurance over project, procurement and contract management.

• 2007-2014 – APM Volunteer. Assurance SIG and Audit Committee.

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Who am I?

• Chartered Civil Engineer

• Nearly 20 years experience across a range of sectors and disciplines.

• Advising and providing assurance to global companies and organisations on the deliverability of their capital programme portfolios

• Worked for a FTSE-50 company, Big 4 consultancy and Major Public Sector Transport Authority

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What is assurance?

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assurance n. Emphatic declaration, guarantee; self-confidence, assertiveness; insurance esp. of life; certainty. (Source: The Pocket Oxford Dictionary.)

assurancenoun1. 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

What we are often asked?

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• I need to know that everything is under control?

• Is what I am being told is correct?

• I am going to get what I want?

• Will the project going to finish on time and within budget”.

• If things are going horribly wrong and should I can the project!?

Who provides assurance

Internal Audit

External Audit

Quality Assurance

Health & Safety

OGC GatewayTM

Independent

Assurance Reviews

PMO/PMCoE

Control Self

Assurance

NAO

Standards

Systems

Project Audits

Contract Audits

Peer Reviews

And who receives this assurance?

Internal Audit

External Audit

Quality Assurance

Health & Safety

OGC GatewayTM

Independent

Assurance Reviews

PMO/PMCoE

Control Self

Assurance

NAO

Standards

Systems

Project Audits

Contract Audits

Peer Reviews

Audit Committee

s

Sponsors

MDs & Directors

Project Boards / SROs

Programme BoardsGoverning Bodies

Shareholders

Public & media

Assurance information is only useful if it helps you to make sensible decisions!

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Time for you to work

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What do we want you to do?

Consider the following 3 questions:

• What is and what isn’t assurance?

• What factors make assurance successful?

• If you were writing or buying a guide to assurance, what would you expect to be in it?

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What is and what isn’t assurance?

• Have you had any experience of assurance?

• Who provided the assurance?

• What form did it take?

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What factors make assurance successful?• What would you want to get from assurance?

• What would the outputs be?

• How would it engage with your project?

• Who would undertake the assurance activity?

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If you were writing a guide to assurance, what would you include in it?

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Assurance where you work

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ORGANISATION’S RISKS

First Line ofDefence

Outcome:Control of risks

ORGANISATION’S RISKS

CONTROLS

Application of a Management System, comprising policies,

procedures, processes, standards, etc.

AS

SU

RA

NC

E

Management

Second Line ofDefence

Outcome:Confirmation of control of risks (Verification)

First Line ofDefence

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.

AS

SU

RA

NC

E

AS

SU

RA

NC

E

Management Management

Second Line ofDefence

Outcome:Confirmation of control of risks (Verification)

First Line ofDefence

Outcome:Control of risks

Third Line ofDefence

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.

AS

SU

RA

NC

E

AS

SU

RA

NC

E

AS

SU

RA

NC

E

Management Management

Board & external stakeholders

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3 lines of defence model for assurance

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

Remember: assurance is glamorous!

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"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)

Thank you

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