Transcript Document

Business Intelligence in the space of Risk Management, Auditing and
Performance Management
IMFO Audit & Risk Indaba 2015
20 – 22April 2015: Olive Convention Centre, Durban
Institute of Municipal Finance Officers & Related Professions
Business Intelligence in the space of Risk Management,
Auditing and Performance Management
Quote
“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
Defining Business Intelligence
What is 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
Defining Business Intelligence
What is 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
BI used successfully in Risk Management
Case Study
 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
BI used successfully in Risk Management
Example of BI in Risk Management Space
 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
BI used as successfully in Risk Management
Case Study
RISK PREVALENCE INDEX
KEY RISK INDICATORS (KRI)
Institute of Municipal Finance Officers & Related Professions
BI used as successfully in Risk Management
Case Study
KRI 1
KRI 2
KRI 3
KRI 4
…
0
5
Institute of Municipal Finance Officers & Related Professions
10
BI used successfully in Performance Management
How can BI be 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
BI used successfully in Performance Management
Performance - and Planning – Systems and Documents are isolated:
 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
BI used successfully in Performance Management
ePerformance Management Tool
 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
BI used successfully in Internal Audit
How can BI be used successfully as a IA Tool
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
BI used successfully in Internal Audit
Relating IA to BI
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
BI used successfully in Internal Audit
Computer Aided-, Technology based- and Automated Auditing
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