managing change risk in excel spreadsheets
DESCRIPTION
This slide describes a method by which spreadsheet changes can be automatically assessed for riskTRANSCRIPT
Quantifying risk in Excel spreadsheet changes
DiffXL
By their very nature, spreadsheets change
Change matters
But who cares about spreadsheet change?
Spreadsheet owners & risk managers
Internal & external auditors
Paul Sarbanes
Mike Oxley
How do companies deal with spreadsheet
change?
In a perfect world …
Every spreadsheet would be audited
and all risks would be mitigated
What do real-world managers say about spreadsheet changes?
We would obviously test and document any changes – But we haven’t amended anything this year.
We always check the changes before release, but they’re not major enough to change the documentation
What do real-world managers say about spreadsheet changes?
What happens when we talk to real-world auditors about spreadsheet auditing?
Realistically, we’d probably expect some small unexplained variations in the final results
What happens when we talk to real-world auditors about spreadsheet auditing?
We’ll always check the high risk spreadsheets, but the rest tend to get ignored – We’ll do them all some day.
The result?
Everything’s fine, boss
… yes, just fine
Is this how you see a spreadsheet?
This is how DiffXL sees a spreadsheet
Base X Y Gamma DeltaCORONA - GLASS7.031065 4.502179 0.01311 0.059024CORONA - GLASS61.91627 17.35029 0.308808 5.357904CORONA - GLASS126.6281 96.10542 4.662414 448.0832CORONA - GLASS0.856899 0.316199 0.032906 0.010405CORONA - GLASS14.93735 7.117257 0.428304 3.048348
Standard spreadsheet view
Formula view(R1C1 style, available in Excel)
Formula map view(as processed by a formula map tool)
Formula mapsA visual representation of a spreadsheet
Examples of changes to the shape & colour
of a formula map
Original view(Formula map version)
Original view(Formula map version)
Column addedwith new text and formula
Original view(Formula map version)
Original view(Formula map version)
Region extended, one text cell and one new formula added at the bottom
Original view(Formula map version)
Some changes offer little
genuine risk
Original view(Formula map version)
Entire region moved and text entered in cell B2
Original view(Formula map version)
Others give cause for concern
Original view(Formula map version)
Text overwrites formula in C5, new formula in cell E5
Original view(Formula map version)
DiffXL also stores some other basic data about the structure. Altogether this means it can ascertain data and formula ranges that have been …
Changed, Combined, Created, Deleted, Extended,
Moved, Overwritten, Shrunk, Sorted or Split
DiffXL
Considers a spreadsheet as a set of contiguous coloured rectangles
DiffXL
Considers a spreadsheet as a set of contiguous coloured rectangles
Looks at how the shapes & colours change
DiffXL
DiffXLConsiders a spreadsheet as a set of contiguous coloured rectangles
Looks at how the shapes & colours change
And assigns the spreadsheet an appropriate change-risk metric
Why measure risk and not just change?
Because when we understand the true
Effort
Riskwe can assign themost appropriate
to minimize the overall
Cost
... and so concentrate on the things that really
matter
DiffXL analysis can be run ….
Automatically during a file save or publish (SharePoint)
DiffXL analysis can be run ….
Automatically during a file save or publish (SharePoint)
As part of a monthly, quarterly or yearly checking process (Excel or SharePoint)
DiffXL analysis can be run ….
Automatically during a file save or publish (SharePoint)
As part of a monthly, quarterly or yearly checking process (Excel or SharePoint)
Manually in Excel by a user, manager or auditor
DiffXL analysis can be run ….
How can DiffXL helpauditors?
It can be run quickly and simply against every important spreadsheet
It identifies spreadsheets where the underlying data has changed
It highlights spreadsheets whose
calculation methods have been modified
It can spot spreadsheets that are fundamentally the same
How can DiffXL helpdepartmental & risk
managers?
It can identify spreadsheets that have been changed accidentally
It can isolate spreadsheets that require re-documenting or re-testing
It can recognize a spreadsheetin need of attention
... and it can be used to locate
issues pro-actively, allowing managers
to resolve problems at a
convenient time before audit.
Plus, there’s a little benefit on the side …
Happy users!
Happy users!
Why so?
They can demonstrate that their changes are
of little risk
Restrictive or time consuming change procedures can be targeted towards high risk changes
They can identify any high-risk changes themselves
… and mitigate them if required
So where does that leave companies using a DiffXL approach to spreadsheet change?
Informed managers
DiffXL
Satisfied auditorsInformed managers
DiffXL
Happy users Satisfied auditors
Informed managers
DiffXL
Beautiful
Excel & SharePoint are registered trademarks of Microsoft Corporation.
DiffXL is a registered trademark of ExcelforManagers.com.Copyright 2009 Excel For Managers. All rights reserved.