Internal Audit Will We Lead, or Become Irrelevant - ACL

28 Pages·2010·0.8 MB·English

INTERNAL AUDIT
WILL WE LEAD, OR
BECOME IRRELEVANT
Please note that today’s broadcast is being recorded and that this presentation is the property of The Institute of
Internal Auditors. Use of these materials without direct permission from The IIA is prohibited.
Before We Begin
• Recording of this Event
• IIA CPEs
• Q&A Session
• Polling Questions
QUESTION #1
Do you have a…
(a) CIA
(b) CPA
(c) CISA
(d) Other certification
(e) Not certified
QUESTION #2
How many people are sitting together watching
this webcast…
(a) 1
(b) 2
(c) 3
(d) 4
(e) More than 5
LARRY HARRINGTON, CIA
VICE PRESIDENT INTERNAL AUDIT
RAYTHEON
WILL WE LEAD OR BECOME IRRELEVANT?
Agenda
• The Case for Change
– Why we must think and act as business owners
– Complacency is our enemy
– Why we must rethink business models
– Why we must change personally
• How do we make the changes?
– For the Profession
– For your Department
– For you Personally
CHANGE COMES MORE QUICKLY WITH
INCREASINGLY DEVASTATING IMPACT
• Think about this decade alone
– 3 economic bubbles
– 3 market crashes
– A major terrorist attack in the US
– 2 major wars being fought
– Increasing cyber attacks
• IP and industrial espionage
• Privacy information
– Increasing regulations
– FCPA
• These events have impacted every company and
every person.
THESE ARE UNPRECEDENTED TIMES
Our customers Leading to:
increasingly face:
Greater need to
Competitive and
understand GRC
stakeholder pressure
Reducing cost and
Recession
simplifying business
Increasing regulatory
Questioning the
oversight
effectiveness/cost of
Budget constraints risk management
Our failure to identify, align to, and support our organization’s
key initiatives will lead to diminished value and respect.
Internal Audit must adapt.
THE CHANGE MANDATE
• IBM: Enterprise of the Future - 3rd Biennial Study
– 1000 Global CEO’s/Public Sector leaders
– 80% say change is accelerating; change is the new norm; status
quo is our enemy.
– Unfortunately, they believe our need to change far exceeds our
ability to change.
– So what is some of their advice?
IBM STUDY (CONT’D)
• Leaders Must Hunger for Change
• It’s a white water world; change is coming from
everywhere.
• Lead and shape change rather than react to it.
• Market and industry shifts provide opportunity to move
out head.
• Reward innovators/successful change managers.