Establish an Effective System of Internal IT Controls to Mitigate Risks
The only thing worse than a lack of control is the illusion of control.
- Deficiencies in controls could result in a serious breach for the company, or worse – your job.
- Despite these drastic consequences, improving the system of internal controls remains a low priority for many IT organizations and their leaders.
- You don’t need to implement every control. Maximize your risk mitigation at a low cost by focusing on your organization’s greatest risks.
Impact and Result
This research will help you prevent or resolve the following situations:
- High Risk Operations: Risks that could damage the business are not being mitigated.
- Lack of Clarity: We don’t know what our controls are. There is no documentation and processes differ from business unit to business unit.
- Lack of Adherence: Effective internal controls exist, but no one follows them.
- Lack of Effectiveness: We have controls in place that are followed, but they seem to be ineffective or we don’t know how effective they are.
- Five anonymous organizations contributed information to assist with the development of this Blueprint.
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- Upcoming Workshops: Accelerate your project with an onsite, expert analyst to facilitate a workshop for you. Contact us for more details.
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Get to Action
Understand the importance of internal controls
Gain an understanding of the process of establishing a well-designed system of internal controls.
Assess need for control
Identify and analyze the severity of IT’s risks; the level of control will be determined by the severity of the risk.
Assess control coverage
Map current controls to risks and create an action plan to close the gaps in your current control coverage.
Develop and communicate controls effectively to ensure adoption.
Monitor and evaluate controls
Adapt to changing risks by continuously and effectively monitoring and evaluating your system of internal controls.
Assemble proof of effective controls
Provide artifacts to auditors.
Module 1: Assess Control Coverage
- Recognition of the benefits and importance of internal controls.
- Identification of the risks of an ineffective system of internal controls.
- Assessment of the adequacy of current controls and their coverage of risks.
Key Benefits Achieved
- Selected metrics to measure your system of internal controls.
- Risks prioritized relative to their current control coverage.
|1.2||Identify and assess IT’s greatest risks.||
|1.3||Map controls to risks.||
|1.4||Assess the adequacy of control coverage for each risk.||
Module 2: Establish, Monitor, and Evaluate Controls
- Identification of specific controls to implement.
- Identification of best practices for control development and monitoring.
- Communication of controls.
- Assign roles and responsibilities for the governance of internal controls.
Key Benefits Achieved
- Identified specific controls to mitigate risks and assigned implementation owner.
- Discussed best practices for developing and monitoring controls.
- Communicated controls effectively to end users.
- Roles and responsibilities assigned for governance of internal controls.
|2.1||Identify the processes affected by each risk.||
|2.2||Determine the specific controls to implement for each control coverage gap.||
|2.3||Create an inventory of control establishment activities.||
|2.4||Discuss best practices for designing controls.||
|2.5||Assign metrics to measure individual control effectiveness.||
|2.6||Develop an internal control communication plan.||
|2.7||Create a RACI chart for governance of internal controls.||
|2.8||Discuss control monitoring and evaluating best practices.||