Wolters Kluwer Unveils Insights for Integrated Assurance Success
Wolters Kluwer, a leading global provider of professional information and software solutions, has recently launched a significant report that sheds light on integrated assurance's critical role in effective risk management and organizational achievements in today’s complex business environment.
The report, titled Paving the Way to Integrated Assurance: A Proactive Approach, is based on a comprehensive survey conducted among 850 audit and assurance professionals worldwide. This extensive research highlights urgent calls for more sustainable methodologies to dismantle communication barriers known as 'silos' within risk management functions. Such silos have been recognized as sources of inefficiencies, redundant efforts, and incomplete reporting.
Key Findings of the Report
Among the insights gathered, significant gaps were uncovered in the alignment of risk management efforts across organizations:
- Only 16% of organizations report effective communication regarding risk management across their different functions.
- 40% struggle with redundant assurance efforts, while 64% manage multiple risk libraries, indicating a chaotic approach to risk management.
- Over half (56%) of respondents indicated a pronounced need for improved collaboration and communication to drive efficiency.
According to Jim Pelletier, Lead Product Manager at Wolters Kluwer TeamMate, "Integrated assurance is not merely a framework; it is fundamentally necessary for organizations striving for transparency in risk management. By leveraging advanced technologies and encouraging better communication, companies are equipped to effectively manage and report risks, thereby supporting informed decision-making processes."
Insights into Adoption and Implementation
The report also delved into how organizations are adapting to integrated assurance strategies:
- Widespread Adoption of the Three Lines Model: A remarkable 93% of surveyed organizations have incorporated the Three Lines Model, emphasizing its pivotal role in clarifying the distinct functions across three critical lines of defense.
- Issues with Incomplete Truths: A mere 16% of participants felt that their risk management practices were fully aligned, with 31% lacking a unified risk taxonomy. Moreover, 57% utilize various methodologies for risk assessment, leading to confusion and fragmented reporting.
- Challenges with Assurance Duplication: Approximately 40% reported difficulties due to repetitive assurance practices, while 61% do not consolidate their assurance initiatives. This often strains resources across different operational levels, diverting attention from essential business activities.
- Necessity for Enhanced Collaboration: An overwhelming 56% of respondents voiced a critical need for better communication and collaboration. The ability to adapt and enhance coordination in the face of new risks is essential for responsive organizational strategies.
Wolters Kluwer’s report underscores the pressing need for organizations to adopt and enhance integrated assurance methodologies to streamline their risk management processes effectively.
About Wolters Kluwer
Wolters Kluwer is a global leader in providing information, software solutions, and services across various professional sectors, including healthcare, tax and accounting, legal, corporate performance, and environmental, social, and governance (ESG) sectors. With an annual revenue of €5.6 billion, the company operates out of over 40 countries, servicing clients in more than 180 nations with a workforce exceeding 21,400 dedicated professionals.
Headquartered in Alphen aan den Rijn, the Netherlands, Wolters Kluwer continually strives to equip its clients with the tools necessary for vital decision-making through a unique blend of technology, domain knowledge, and expertise.
Frequently Asked Questions
1. What is the primary focus of Wolters Kluwer's new report?
The report centers on the importance of integrated assurance in enhancing risk management and organizational success.
2. How was the data for this report gathered?
A global survey involving 850 audit and assurance professionals was conducted to gather insights and data.
3. What percentage of organizations struggle with assurance duplication?
Approximately 40% of organizations reported challenges related to repetitive assurance efforts.
4. Why is communication essential in risk management?
Effective communication fosters better coordination, reducing inefficiencies and improving decision-making across organizational functions.
5. What is the Three Lines Model?
The Three Lines Model is a framework that delineates the roles and responsibilities across three defense lines in risk management, which has been widely adopted by organizations.
