business intelligence in the space of risk management, auditing and performance management imfo...
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Business Intelligence in the space of Risk Management, Auditing and Performance Management
IMFO Audit & Risk Indaba 201520 – 22April 2015: Olive Convention Centre, Durban
Institute of Municipal Finance Officers & Related Professions
Quote
Business Intelligence in the space of Risk Management, Auditing and Performance Management
“Analytics is the ability to look at data and then turn that into a story; to be able to draw from all kinds of information and turn
it into a story”
Institute of Municipal Finance Officers & Related Professions
What is Business Intelligence?
Defining Business Intelligence
Definition Business Intelligence the use of technology and data analytics
expertise to answer the age old questions which is: “How is business?”
Business Intelligence is the use of analytics to tie your strategic goals to your actual deliverables. It also links your strategic goals to your plans
Why Business Intelligence Streamline all its processes around performance management, risk
management, compliance and monitoring and also internal auditing Gain important insight about core business processes and decisions Better delivery of services and delivery on mission goals Analyse project and program outcomes
Institute of Municipal Finance Officers & Related Professions
What is Business Intelligence?
Defining Business Intelligence
How is BI Implemented in Local Governement Live City Scorecards Live District Scorecards CFO Dashboards Municipal/City Manager Dashboards Live Municipal Manager Scorecards ePerformance Management Solution Service Level Measuring Matrices
Institute of Municipal Finance Officers & Related Professions
Case Study
BI used successfully in Risk Management
Brief Case Study Payment of Creditors within 30 days SCM related Risk
BI Solution in the Risk Management Space Live Risk Matrix
Institute of Municipal Finance Officers & Related Professions
Example of BI in Risk Management Space
BI used successfully in Risk Management
Payment of Creditors within 30 days Non-adherence to policies and legislation Implications of non-adherence
Supply Chain Management Risk Areas Non-adherence to policies and legislation Conflict of interest
BI Solution in the Risk Management Space Live Risk Matrix
Institute of Municipal Finance Officers & Related Professions
Case Study
BI used as successfully in Risk Management
Institute of Municipal Finance Officers & Related Professions
RISK PREVALENCE INDEX
KEY RISK IND
ICATORS (KRI)
Case Study
BI used as successfully in Risk Management
Institute of Municipal Finance Officers & Related Professions
KRI 1
KRI 2
KRI 3
KRI 4
…
0 5 10
How can BI be used successfully in Performance Management?
BI used successfully in Performance Management
Strategy and planning tools that are the basis of Performance Management: IDP Budget SDBIP Performance Contracts SLAs Project Management Systems Contract Management Systems
Institute of Municipal Finance Officers & Related Professions
Performance - and Planning – Systems and Documents are isolated:
BI used successfully in Performance Management
Strategy and planning tools that are the basis of Performance Management: Process of aligning, mapping and collating disparate systems
is time consuming As a result there is just enough time to produce reports but no
time to analyse and extract insight Need and urgency to action performance challenges is not
realized Inefficiencies and exceptions are not identified promptly
Institute of Municipal Finance Officers & Related Professions
ePerformance Management Tool
BI used successfully in Performance Management
An Electronic Performance Management Tool would: Ensure Service Delivery objectives and goals are met Enhance functioning of the municipality Increase productivity Encourage synergy in the municipality Align Key Performance Indicators to personnel Promote culture of accountability
Institute of Municipal Finance Officers & Related Professions
How can BI be used successfully as a IA Tool
BI used successfully in Internal Audit
The Institute of Internal Auditors (IIA) defines Internal Auditing as:
“…an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the
effectiveness of risk management, control and governance processes.”
Institute of Municipal Finance Officers & Related Professions
Relating IA to BI
BI used successfully in Internal Audit
Internal Auditing helps a organization to: “…evaluate and improve the effectiveness of risk management, control and governance processes.”
Business Intelligence a technology based approach to assist an organization to: “…evaluate and improve the effectiveness of risk management, control and governance processes.”
Institute of Municipal Finance Officers & Related Professions
Computer Aided-, Technology based- and Automated Auditing
BI used successfully in Internal Audit
Internal Auditing organisations including the IIA “provide guidance and guidelines for the use of automated tools to help with the efficiency and effectiveness of the auditing processes. Technology-based auditing techniques, in particular, can play an important role in the auditing process.”
Technology-based techniques and data analytics techniques are used for automated tests of transactions and activities.
Institute of Municipal Finance Officers & Related Professions
Thank You!
Institute of Municipal Finance Officers & Related Professions