Wolters Kluwer report explores integrated assurance trends

Wolters Kluwer has released a new report addressing significant trends, challenges, and opportunities within the realm of integrated assurance for internal auditors.

Based on a global survey conducted with 850 audit and assurance professionals, the report titled "Paving the Way to Integrated Assurance: A Proactive Approach" highlights the crucial role of integrated assurance in modern risk management and overall organisational success.

The survey points to a substantial need for sustainable methods to dismantle existing "silos" within risk management and assurance functions that lead to inefficiencies and duplicative efforts. Findings from the report indicate that only 16% of organisations have successfully aligned their risk management strategies with clear communication across functions.

The report further reveals that 40% of organisations experience challenges due to duplicative assurance efforts, with 64% managing multiple risk libraries. Additionally, 56% of respondents expressed a "strong" or "critical" need for enhanced alignment, communication, coordination, and collaboration.

Jim Pelletier, Lead Product Manager at Wolters Kluwer TeamMate, commented on the findings: "Integrated assurance isn't just a concept. It's an essential approach for organizations to achieve clarity in how risks are managed and reported in order to enable informed decision making. Organizations that invest in advanced technologies, drive coordination and alignment and empower leadership from internal audit will be better positioned to understand, align and act on their risk management and assurance strategies."

Adoption of the Three Lines Model has been nearly universal among the surveyed organisations, with 93% employing it to some degree. This model is deemed valuable in clarifying critical roles across three fundamental lines. However, the alignment of risk management efforts appears to lag, as only 16% of respondents cited their efforts as "clear and fully aligned." In contrast, 31% acknowledged a lack of common risk taxonomy, while 57% reported employing various risk rating methodologies. Such fragmentation results in disparate versions of risk and assurance information, which can hinder informed decision-making by executive leadership and boards.

The problem of assurance fatigue, stemming from duplicative efforts, is also highlighted with 40% of respondents recognising the challenges it presents. A majority of organisations (61%) do not coordinate their assurance activities, while 64% are managing multiple risk libraries, causing inefficiencies particularly across the second and third lines, and burdening the first line.

An overarching need for improved collaboration has been noted, with 56% of professionals emphasizing a "strong" or "critical" necessity for enhanced communication, coordination, and collaboration. Such efforts are critical for agile organisational responses to emerging risks.