Have you ever asked an employee to audit another team? If so, this is what you may be experiencing and the challenges they be facing.
The audit schedule for the year ahead looks daunting, lots to do, but too little resource. Hiring additional heads has been suggested but this takes time and crucially budget which the boss suggests will be difficult to secure, so either as a short term or long time measure the business turns to trusted employees to carry out audits. They are usually;
- Trusted and capable within their own departments
- Believe they have the time to carry out the role
- Volunteered, there’s no bonus or tangible reward for helping
- Not skilled or knowledgeable in the department or process they are auditing
While its great the business can call upon its workforce to support it in a time of need, there are pitfalls to this approach.
- Volunteers often lack the authority to challenge department heads leading to confrontation or the department head rail roading the auditor.
- They are not responsible for the consequences of a poorly carried out audit.
- If not sufficiently praised or rewarded, It could be seen as drain on their time. They may have other pressures in their day to day job which they should be focusing on.
- They can be trained to carry out the audit but are trained to spot the risks and opportunities?
- Some won’t handle the responsibility or pressure, passing what the should fail as they believe its what the business wants.
But there is another way to audit, introducing RS Vista.
RS Vista is a cloud based assessment tool that leverages the power of blockchain to assess business culture, the risk to compliance and business performance.
RS Vista can quantify qualitative data and automatic analysis provides detailed insights into where risks to exploitation are emerging, not based on what people say is happening or, reported as KPIs but what is really happening inside your business right now.
- Doesn’t use questions, surveys or visible scoring methods – not interested in what people say is happening or what is written, only the outcome or impact of how people behave, i.e. the real world.
- Using block chain to understand complexity.
- Reduces the need and cost for human involvement – providing risk profiles, greater insights and analysis beyond the human being to deliver this practically.
- Restricts human value judgments – removes inbuilt bias to improve result accuracy and reduce cost.
- Quantifies qualitative data – making what is often invisible and intangible both visible and tangible so management is possible.
- Recognizes organic and mechanistic business system thinking – meaning that we base solutions on sound academic rigor.
RS Vista is already helping many businesses develop their auditing strategies by collecting evidence what is actually happening and signposting areas of risk for the auditing teams to target.
About the author: Ian Rosam from HPO Risk Solutions is focused on helping organisations digitise risk & compliance by leveraging the power of cloud, block chain and AI tools to optimise business and compliance performance.