APM Presents - Friend or enemy? Understand the basics of assurance
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Transcript of APM Presents - Friend or enemy? Understand the basics of assurance
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?
18 Oct 06 2
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.
18 Oct 06 3
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
18 Oct 06 4
What is assurance?
18 Oct 06 5
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!
18 Oct 06 9
Time for you to work
18 Oct 06 10
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?
1 December 2010 13
If you were writing a guide to assurance, what would you include in it?
1 December 2010 14
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
18 Oct 06 19
This presentation was delivered at an APM event
To find out more about upcoming events please
visit our website www.apm.org.uk/events