European Leadership Forum Madrid, Spain 6 October 2018 - - PowerPoint PPT Presentation

Madrid, Spain 6 October 2018

European Leadership Forum

Introductions - Global Delegation

• Naohiro Mouri, CIA

– The IIA 2018-2019 Global Chairman of the Board – EVP and Chief Auditor, AIG Group, Japan

• William Michalisin

– EVP and Chief Operating Officer, IIA Global HQ

• Lily Bi, CIA, CRMA, QIAL

– Vice President, Global Professional Certifications, IIA Global HQ

European Leadership Forum

Purpose

Network and meet face-to-face with Affiliate Leaders in Europe and keep you informed of key global developments and initiatives since the 2018 Global Council in Panama

Today’s Agenda

• Chairman’s Opening Remarks
• New Global Strategic Plan
• New Global Governance
• Licensing the IA Profession
• Global Operations Update
• Affiliate Services
• Certifications Update
• Q&A

• Mr. Naohiro Mouri, CIA

2018-19 Global Chairman of the Board

Opening Remarks

• Mr. Naohiro Mouri, CIA

2018-19 Global Chairman of the Board

2019-2023 Global Strategic Plan

2019-2023 Global Strategic Plan Development Process

2017

• Initiated discussion on new bottom up process at Global Council in

Rome

• Conducted 5 regional SWOT sessions and surveys to collect input

that led to the identification of 3 major themes

2018

• Collected ideas regarding the 3 major themes at Global Council in

Panama City

• Based on all input, EC Task Force developed a draft of the plan which

was circulated to the Global Board, Affiliate leaders, GELT and Committees for feedback and updated plan

• Final plan approved by the Global Board of Directors in Dubai (May)
• Final 2019-23 Global Strategic Plan announced to Affiliates (August)
• HQ Staff working with various groups to develop short, medium and

long term KPIs and tactics

New Vision and Purpose

IIA VISION 2030 – VISION FOR THE PROFESSION

Internal audit professionals are universally recognized as indispensable to effective governance, risk management, and control

IIA VISION 2024 – VISION FOR THE IIA ORGANIZATION

The IIA is the primary global resource for members and the internal audit profession, enabling internal audit professionals to be recognized as critical to enhancing and protecting organizational value

THE IIA ORGANIZATION’S PURPOSE

To lead the internal audit profession and enhance its value to stakeholders through empowered members

The IIA’s 2019-2023 Plan - Goals

Stronger Profession

The internal audit profession is strengthened by enabling IIA members to engage stakeholders and provide insight on risks impacting organizations

Competent Professionals

Members are competent and confident to deliver

• n stakeholder expectations and demonstrate the

value of our profession

Sustainable Global Value

Value is delivered to IIA members globally

GOAL B GOAL A GOAL C

Next Steps

• Share multi-year tactical plan with Global

Board – Midyear

• Develop 2019 KPIs and gain approval

from Executive Committee – Midyear

• Execute plan, monitor and report out on

KPIs in 2019

The IIA’s New Global Governance

New Global Governance

Executive Committee

Global Assembly

Supervisory Committee Global Board (38) Global Board (17) Global Council Global Assembly

Eliminated the existing Executive Committee to establish a small Supervisory Committee to advise CEO and serve as Compensation Committee Reduced the size of the Global Board from 38 to 17. Changed Global Council to Global Assembly and increased its responsibilities

May 2018

New Bylaws approved by member at Annual Business Meeting

Key Milestones

September 2018

Call for nominations for Global Board

• f Directors, 17 Committees and IAF

Board of Trustees

October 2018

Nominations deadline is 12 October

July 2019

New Global Board to commence

2020

First Global Assembly will meet

Key Changes

• Board size and

composition

• New board will be

competency-based

• Global Nominating

Committee will be a standing committee

New Global Assembly

• First meeting in 2020 in London, UK
• Enhanced role in governance
• Global Assembly will have a joint

session with the Global Board of Directors

• New Charter and operations to be

discussed at 2019 Global Council for input from Affiliates

Licensing the Internal Audit Profession

IIA Policy on Licensing the IA Profession

• Updated: Laws, Regulation, and Licensing

Policy

• NEW: Legislative and Regulatory Guidelines

– Full report shared with all Affiliate Contacts and Presidents in July 2018 – Will require annual attestation – If local government is considering laws/regulations related to IA, please contact the Global Relations team.

Questions?

William Michalisin EVP and Chief Operating Officer

The State of The IIA’s Operations

Global Footprint 192,201 Members 170+ Countries & Territories 107 International Affiliates 189,910 Certifications awarded 153,206 CIAs awarded

NEW 2018 MILESTONE!

Membership tops 197,000 in April 2018 & Total CIAs exceed 150,000

Global Membership

180,000 181,000 182,000 183,000 184,000 185,000 186,000 187,000 188,000 189,000 190,000 191,000 192,000 193,000 194,000

12-Month Moving Average

Region Members Africa 12,967 Asia Pacific 35,636 Europe 49,238 Latin America 14,339 Middle East 5,958 North America 72,662 Virtual 1,401

Membership by Region

(Through August 2018)

Global Certifications & Qualifications

15,322 7,532 6,952 5,333 565

153,206

(Through August 2018)

Total certifications awarded: 189,910

IIA Inc. Financial Performance

In Thousands 2018 Budget 7+5 Forecast Variance Revenue 56,087 57,759 1,672 Expenses 55,559 55,661 (103) Contribution from Operations 528 2,098 1,570 Other Income or (Expenses) 867 (165) (1,032) Net Contribution 1,395 1,933 538

Connecting our Interdependencies

Standards & Guidance Certification Research Training Membership Outreach Advocacy

Key 2018 Accomplishments

PLANNING

• Global Strategic Plan

1. Stronger Profession 2. Competent Professionals 3. Sustainable Global Value

• Ensured GDPR Compliance

Key 2018 Accomplishments

CONTENT

• Global Thought Leadership

1. Internal Audit in the Age of Disruption 2. Special Reports on AI – 3 parts 3. 2018 Global Risk Report: Top Risks Faced by Chief Audit Executives 4. Agility and Innovation

• Content Strategy under development

Key 2018 Accomplishments

CONTENT

• Position Paper
• Why Conformance Matters
• White Paper (IIA and IFAC)
• United, Connected and Aligned:

How the Distinct Roles of IA and the Finance Function Drive Good Governance

Key 2018 Accomplishments

• New/updated Guidance

1. Auditing Grants in the Public Sector (PG) 2. Coordination/Reliance: Developing Assurance Map (PG) 3. Auditing Model Risk Management (PG) 4. Auditing Liquidity Risk, An Overview (PG) 5. Auditing IT Governance (GTAG) GUIDANCE

Key 2018 Accomplishments

• Planned and executed successful

conferences and meetings, including: – Global Council

• Panama: 80 affiliates

– GAM Conference

• Las Vegas: 1.300+ paid

attendance – International Conference

• Dubai: 2.900+ in attendance

EVENTS

Key 2018 Accomplishments

• Expanded Global Footprint

– 2 New Chapters in Formation (Venezuela and Kazakhstan) – New Networks in Vietnam & Pakistan

• African Development

– Published research with World Bank – Executed regional development efforts CAPACITY BUILDING

Key 2018 Accomplishments

ADVOCACY

• Global Advocacy Platform

– New Toolkit, Video for Affiliates

• Internal Audit Awareness

– Recognized Affiliates for their efforts around IAA Month

• Tone at the Top

– Crisis Resiliency (Feb) – The Carillion Failure (June) – A Conspiracy of Silence (August)

Key 2018 Accomplishments

TRANS- FORMATION

• Set up a new company in China to

comply with NGO rules

• Revised International Conference Model
• Piloted Global OnDemand offering
• Business & Digital Transformation
• Global Operating Model

Future Initiatives

• New Global OnDemand offering
• New Assessment-based Certificates
• 3 Lines of Defense refresh project
• Competency Framework refresh
• Induction training for new Affiliate

Leaders

• Demand Study

Affiliate Services and Events

COSO Internal Control Certificate Global OnDemand 2019 International Conference 2019 Global Council

COSO Internal Control Blended Training Learning

• Training program on the COSO

Internal Control Framework.

– Targets professionals with 2–6 years of experience – Available in English, French, and Spanish

• Discounted pricing by region.

– COSO approved minimum price for Europe: US$1,200 (33% savings) – Affiliate remits 40% royalty payment (gross) – Additional US$15/per exam delivered

Self-Paced (4.5 hours) Two computer-based modules deployed from The IIA. Classroom Training (2.5 days) Includes instructor and participant guides and PowerPoint presentation Online Exam

• Open book exam
• Certificate of

completion

IIA GLOBAL IIA GLOBAL AFFILIATE

25.5 CPEs

COSO Internal Control Program Components

Self-Paced (4.5 hours) Two computer-based modules deployed from The IIA. Classroom Training (2.5 days) Includes instructor and participant guides and PowerPoint presentation Online Exam

• Open book exam
• Certificate of

completion

COSO Internal Control Participation in Europe

• Six Affiliates offer and plan to offer
• 10 classes held with more planned
• Regional trainers
• The IIA provides

– Facilitator and participant material – Customizable marketing copy and graphics – Access to online modules – Concierge for Affiliates

• Affiliate responsible for

– Program administration, payment collection and remittance, training facilitation, and marketing

Coming Soon! Global OnDemand

• Online, self-study on topics such

as fraud, ethics, audit fundamentals

– Will expand to include courses in French and Spanish

• New agreement in development

– Will outline roles and responsibilities for IIA Global and Affiliates – Detail revenue share

• Interested in participating now?

– Contact Guilherme.Lopes@theiia.org

1

Save The Date! 7–10 July 2019

A VIBE ALL ITS OWN

Register Now: https://ic.globaliia.org/

Self-Paced (4.5 hours) Two computer-based modules deployed from The IIA. Classroom Training (2.5 days) Includes instructor and participant guides and PowerPoint presentation Online Exam

• Open book exam
• Certificate of

completion

Countdown to Tokyo: Global Council 2019 Timeline

Self-Paced (4.5 hours) Two computer-based modules deployed from The IIA. Classroom Training (2.5 days) Includes instructor and participant guides and PowerPoint presentation

Registration Opens Deadline to request a Visa Background Papers & Polling Questions

October Dec. January March

See you in Tokyo!

Classroom Training (2.5 days) Includes instructor and participant guides and PowerPoint presentation

Global Relations Staff

Sylvia Gonner,

VP, Global Relations

Guilherme Lopes,

Managing Director, Global Development

Shamika Townsend

Manager, Global Services and Communications

Severine Chanay-Savoyen

Manager, Global Operations

Evy Gonzalez,

Specialist, Operations

Thama Andre,

Specialist, Global Communications

Matthew Bennett,

Director, Global Development

Additional HQ Leaders

Carrie Summerlin,

VP, IA Foundation

Jim Pelletier,

VP, Standards & Knowledge

Lisa Hirtzinger,

VP, Training & Development

Matt Marcial,

VP, Conferences

Charles Redding,

Chief Information Officer

Monica Griffin,

Chief Marketing Officer

Ann Cohen,

Chief Financial Officer

Cyndi Plamondon,

Chief Knowledge Officer

Questions?

William Michalisin EVP & Chief Operating Officer Tel: +1-407-937-1380 Email: William.michalisin@theiia.org

Lily Bi, CIA, CRMA, QIAL Vice President, Global Professional Certifications, IIA Global HQ

Certifications Update

Agenda Topics

• 1. CCSA, CGAP, CFSA Transition
• 2. Certification Registry for Active

Certification Holders

• 3. The Revised CIA Exam and Translation

Requirements

• 4. Certifications Trend in Europe

1

CCSA, CGAP, CFSA Transition

Key Decisions

• CGAP and CFSA are repositioned as an assessment-based

certificate.

• CCSA is integrated into CRMA through the next CRMA

update.

• CCSA/CGAP/CFSA remain valid designations. Holders

retain “certified” status as long as they report CPE.

• A CIA challenge exam will be offered for active

CCSA/CGAP/CFSA certifications holders.

• The last date to accept new applications for CCSA / CGAP /

CFSA is December 31, 2018.

All communications were sent out in July and August 2018.

CIA Challenge Exam

Exam Content:

• Gaps between the CCSA/CGAP/CFSA and CIA, emphasizing on the IPPF
• 150 questions, 3.0 hours

Eligibility:

• Earn CCSA/CGAP/CFSA by 2018
• Have “active” status of the CCSA/CGAP/CFSA at the time of applying for and

sitting for the CIA challenge exam

Timeline:

• Apply, register, schedule: Starting April 2020
• Test in English: July – December 31, 2020
• Test in other languages: January – December 2020

Resources for Affiliates:

• Access certification holders and candidates email list via iiareporting.theiia.org.
• FAQs and other details https://global.theiia.org/certification/Pages/Certification-Transition.aspx

Certifications v Certificates

Certification Certificate Yes Confers status No Yes CPE needed No Yes Designation No No Training mandated Yes Yes High stakes assessment No Yes Job analysis, etc. No Maybe Grandfathering No Yes Acronym No

Key Certificate Design Features

• Course title ends with “certificate”

– once and done – no acronyms, digital badge only – no CPE, no status, no “certificate holders”

• OnDemand initially, but also In-Person and Online

– 24+/- CPEs – 50-100 question exam via LMS

• Local element may be provided by local affiliate

– optional, not tested in global / general assessment

• No formal entry requirements
• Can obtain before, during, or after CIA

Timeline

Aug 2018: Stakehold er meeting Sep 2018: update EC/NAB Q3 2018: Develo p generic model Nov 2018: share model at midyear 2019: Create PS/ FS 2020: Pilot and launch 2020: Continue to develop (Tech, DA, Fraud, etc)

Key Inputs & Communications:

• Members (aligned with certification repositioning)
• GELT/Affiliates/Global Council
• EC and the Board

2

Certification Registry For Active Certifications Holders

Certification Registry

It is a public registry, an up-to-date record of individuals who have earned an IIA certification and maintain it via continuing professional education. An example:

Why Certification Registry

• Becoming “certified” is a point-in-time achievement.
• The Standards require CPE.
• A certified individual can be in one of the following status:

– Active / Certified – Inactive (Grace Period) – Inactive – Retired

• Only 40% CIAs remain “active” status.
• Individuals who are not in “active” status may not use the

designations.

• The registry is a common practice in the credentialing industry

(ISACA, CFA, CPA, PMI, IMA)

IIA’s Approach in Certification Registry

• Available in 2019.
• Only “active” certification holders' certifications will be included.
• No contact information.
• Only full name, status, certificate ID and country.
• Inclusion in the registry is voluntary.
• Opt in at the following time:
• 1. When certification holders report their

required CPE hours annually. (NOW)

• 2. When candidates complete the certification

application process. (new CCMS)

• 3. Any time certification holders access and

make changes in their profile. (New CCMS)

3

The Revised CIA Exam and Translation Requirements

New CIA Exam Transition Schedule

Languages ​ Availability Date English January 1, 2019 ​ French and Spanish ​ June 1, 2019 ​ German and Turkish ​ July 1, 2019 ​ Arabic and Russian August 1, 2019 ​ Korean and Portuguese ​ September 1, 2019 ​ Chinese Traditional and Japanese ​ October 1, 2019 ​ Chinese Simplified ​ December 2019 or early 2020

Requirements for Translating CIA

Current MRA and Addendum Minimum Translation Requirements Deliver no less than 300 parts per year Deliver >= 320 parts per language per year starting 2018 Deliver >= 600 parts per language per year by 2021 Free access to Mandatory Guidance in the local language and the entire IPPF (in any relevant, available language) Translate IPPF (Mandatory + IGs) Translate IPPF (Relevant PGs and GTAGs) Translate the textbook and Sawyer, by 2019 Translate and promote the CIA Job Analysis Study, which serves as the foundation for CIA exam content. Other Requirements:

• Organize and facilitate exam review courses (either self-study, online, instructor-led, or local study groups)
• Promote certification review materials provided by The IIA or Internal Audit Foundation if no local language review materials

exist

• Offer local CPE program that meets The IIA’s criteria
• Make all reasonable efforts to increase demand of The IIA’s Certifications programs (market to candidates who are currently

pursuing Certifications, identify and market to prospective candidates considering Certifications)

4

Certifications Trend in Europe

Global Certifications & Qualifications

North America 52,334 / 36% Central South America 1,545 / 1% Africa 3,661 / 2.5% Asia Pacific 68,503 / 47% Middle East 3,643 / 2.5% Europe 16,186 / 11% Other 5,068

Certifications Portfolio

CIA, 81% CRMA, 8% CFSA, 4% CGAP, 3% CCSA, 4% QIAL, 0%

All time Active % CIA 153,206 61,238 40% CRMA 15,322 9,621 63% CFSA 6,952 2,795 40% CGAP 5,333 3,167 59% CCSA 7,532 3,525 47% QIAL 565 534 95%

Trend of CIA Exam Delivered

4,153 4,270 4,511 4,249 2015 2016 2017 2018

Europe

55,962 46,129 48,294 54,449 2015 2016 2017 2018

Global Soft market in Europe. WHY?

Questions?

Lily Bi, CIA, QIAL, CRMA Vice President, Global Certifications Tel: +1-407-937-1359 Email: lily.bi@theiia.org

Thank You