Connect Fall 2018 | Page 16

S P OT LI G H T Implementing CA and CM Whether you adopt one or both of these practices, your entire team should be involved in strategizing implementation. Start the process by considering these six questions: DATA DASHBOARDS Also known as an executive dashboard or business intelligence dashboard, the data dashboard is a customizable management tool that provides real-time performance metrics at a glance. As an integral part of continuous auditing and continuous monitoring, this visual tracker displays metrics, data points, and key performance indicators, providing valuable insights that drive decision- making across your company. When choosing the right dashboard for your company, consider the following features: � DATA AUTOMATION. A dashboard should contin- uously pull information from existing sources and programs, rather than rely on manual input and updates. Outdated, inaccurate dashboards can be worse than not having one at all. � ACTIONABLE METRICS. Many companies include “vanity metrics” on their dashboards that cannot be acted upon. Be sure the data you display on your dashboard lead to clear decisions and consequences. � ACCESS & REPORTING. Personnel in the field and managers on the floor will require your dashboard to interact on multiple platforms. Some dashboards also have SMS capabilities and will send instant alerts based on predefined thresholds. � EASY NAVIGATION. Don’t choose a dashboard that crams in too much information. Your company snapshot should either fit on one screen or use tabs to segment the information. � CUSTOMIZATION. Resist the urge to show every- thing to everyone and be discerning about what you want reported to each division. Depending on seniority level and employee function, your dashboard should be capable of simultaneously displaying various sets of data or the same data presented differently. � HOLISTIC SOURCING. Make sure your dashboard casts a wide net and tells your whole story using metrics from across, and outside, your company. 16 WHO WILL SPEARHEAD? Every initiative needs a champion, and this effort is no exception. Because CA is driven by internal audit and CM by management, there must be an established leader who can communicate to both entities in the event of a policy or implementation change. The leader also garners support from all stakeholders and establishes systems that maximize the interactive efficiency of the dual functions. WHAT ARE OUR PRIORITIES? There are myriad approaches to CA and CM, but your company should develop a custom plan based on your own industry, resources, company culture, and goals. Define your unique key risk indicators (KRIs) and decide on a monitoring process and an accountability structure for each. Extrapolate from your KRIs the business systems to be monitored or audited and consider regulatory requirements and performance concerns for each. Make sure your overall approach aligns with your company’s goals and objectives. WHICH RESOURCES WILL WE USE? The two major assets that must be considered in CA and CM are people and technology. There are numerous computer-assisted auditing and monitoring tools available, but the program you choose is no more important than the people you train to imple- ment it. List all of your sources and systems, and the data available from each, then define universal rules, routines, and procedures. WHEN IS THE BEST TIME TO BEGIN? Adopting CA and CM will present major shifts in your business paradigm, so take an iterative approach to its implementation. Start slowly, monitoring already well-documented transactions, like accounts payable or accounts receivable. When you become more familiar with the system and its possibilities, you can flesh out its application. Schedule phases based on your unique circumstances with regard to cost and benefits. HOW WILL DATA BE REPORTED? Present formal results and key insights regularly using the most recent data available. Determine which managers will receive reports, how often, in what format, and the specific information that will be included in each. Decide early in the process how you will determine if the exercise is meeting its intended goals. WHAT WILL WE DO WITH THE FINDINGS? Based on results, make appropriate assumptions about discrepan- cies and risks, then determine adaptive steps. Measure the impact of the findings and determine how and when you will calibrate operations. Set up clear indicators that your operations are getting smarter and that controls are becoming stronger as a consequence. SNB.COM // CONNECT INNOVATION FALL 2018 // RANKED ONE OF FORBES' BEST BANKS OF 2018