IIA North American Board Chairman Perspective February 2, 2016 Mike Joyce, CIA, CPA, CRMA, CLU, FAHM Chief Auditor Compliance Officer Blue Cross Blue.

IIA North American Board Chairman

PerspectiveFebruary 2, 2016

Mike Joyce, CIA, CPA, CRMA, CLU, FAHMChief Auditor & Compliance OfficerBlue Cross Blue Shield AssociationChairman, IIA North American Board

Agenda

• Personal Introduction• IIA Mission & Strategic Direction• IIA’s Global Footprint• IIA North America• BCBSA Audit Perspective• NA Chairman’s Theme Discussion – “Make Your Mark”

My Background/BCBSA Audit Environment

• Internal Auditor Since 1983• IIA Volunteer Since 1989• BCBSA Chief Auditor Since 1999• BCBSA Structure /1,000+ employees• Report directly to CEO and Finance & Audit

Committee• Two offices - shared files on WAN• Staff size 21 – only 7 Audit Professionals; remainder

represents anti-fraud and compliance staff• Avg 38 - 48 audit reports issued per year

About The IIA

The internal audit profession’s most widely recognized advocate, educator, and provider of standards, guidance, and certifications.

Established in 1941, The IIA today serves more than 180,000 members from 190 countries. www.globaliia.org

Membership by Regions

*April 2015 Membership Data

Region Membership

Africa 14,054

Asia/Pacific 31,377

Central/South America 13,173

Europe 49,141

Middle East 6,304

North America 69,521

Members at Large 942

World Wide Total 188,821

Certifications: History of the Exams

• Certified Internal Auditor (CIA) exam first introduced in 1974

• Certification in Control Self Assessment (CCSA) in 1999

• Certified Financial Services Auditor (CFSA) in 2002

• Certified Government Auditing Professional (CGAP) in 2000

• Certification in Risk Management Assurance (CRMA) in 2011

Certifications & Qualifications Pathways

IIA Global Certification Statistics

124,229

13,886

6,438

6,079

3,608

Globally Advocating Good Governance, Risk Management and Control

FOUR PRINCIPLES

1. Strong and Effective Audit Committee

2. Clear Accountability of Risk Management and Control

3. Properly Structured, Operate in Compliance with Standards

4. Reporting Lines for CAE Enhance Organizational Independence.

The IIA’s Mission

To lead the Global profession and advance its value by:

– Promulgating global standards and guidance– Developing and delivering global certifications and qualifications– Offering professional educational and development opportunities– Researching, disseminating and promoting best practices in internal

auditing– Advocating and promoting internal audit’s value to key stakeholders

Global Partnerships

Efforts to broaden the business world’s understanding of internal auditing:  International Federation of Accountants (IFAC)

Financial Stability Board (FSB)

International Integrated Reporting Council (IIRC)

Regulators/Listing Organizations

US Congress/Regulators

Organization for Economic Cooperation and Development (OECD)

International Organization of Supreme Audit Institutions (INTOSAI)

Association of Chartered Certified Accountants (ACCA)

Information Systems Audit and Control Association (ISACA)

Global Reporting Initiative (GRI)

International Organization of Security Commissions (IOSCO)

Global Perspective

The IIA’s Core Purpose

• To lead the Global profession and advance its value.

The IIA’s Vision

• Internal audit professionals will be universally recognized as indispensible to effective governance, risk management, and control.

IIA Core Values

• Collaboration• Courage• Unity in Diversity• Global Mindset• Innovation• Integrity• Service Excellence• Respect• Professionalism

IIA Global Strategic Plan - Goals

Professionalism•The IIA will lead the profession through the development of timely and relevant knowledge, global guidance, and career paths. Advocacy•The IIA will have raised the profile of and demand for the profession to ensure it is recognized as an indispensable resource by key stakeholders. Leading Voice•The IIA will be recognized as the leading voice for internal auditing.Capacity•The IIA will collaborate globally to enhance the capacity of the profession.Sustainable Value•The IIA will deploy both financial and business models that generate sustainable value for members.

More than 180,000 Members in 190 Countries

BOARD OF DIRECTORS

Executive Committee NA Directors Institute Directors Directors at Large Chairman, Audit Committee IIA President & CEO

GLOBAL NOMINATING COMMITTEEAudit Committee

IIA Research Foundation

The Executive Committee

Chairman of the BoardSenior Vice ChairmanVice Chairmen (5)*Past Chairmen (2)

IPPF Oversight Council

Global Council

14 Global Committees Via EC VCs

The North American Board

The IIA’s GlobalGovernance Structure

NORTH AMERICAN VOLUNTEER ORGANIZATIONThe Institute of Internal Auditors

More than 75,000 Members and more than 160 Chapters in US, Canada, Caribbean, Guyana & Bermuda

CANADIAN BOARD

NA BOARD OFFICERS (6)Chairman, North American Board

Senior Vice Chairman Vice Chairman - Content

Vice Chairman - Member ServicesVice Chairman - Professional Development

Vice Chairman – Specialty GroupsVice Chairman-Finance

NORTH AMERICAN BOARD(recommended composition)

3 members from 5 largest chapters1 member – Canada (if not included above)

5 members-at-large1 Past Chairman NAB

1 Executive Committee Representative1 IIA President – non-voting

VICE CHAIRMAN – MEMBER SERVICES

Chapter Relations

NA NOMINATING COMMITTEE

VICE CHAIRMAN – PROFESSIONAL DEVELOPMENTLearning Solutions

Regional Conference

SENIOR VICE CHAIRMANNA Advocacy Committee

VICE CHAIRMAN – FINANCE

Global Finance Committee

VICE CHAIRMAN – SPECIALTY GROUPSAudit Executive Center

ACGA/Government Center

Financial Services Center

Environmental, Health & Safety Center

VICE CHAIRMAN – CONTENT

Publications Advisory Committee

What Does North American Board Do?

• Represent North American interests at global level

• Oversees budget/dues for NA members• Provides guidance for NA training

programs• Provides support to NA Chapters

North American Strategic Plan

• Goal A. Professionalism: The IIA, at all levels, will collaborate to enhance the profession in North America.

• Goal B. Advocacy: The IIA will raise the profile of and demand for the profession, enhancing its recognition as indispensable to good governance by key stakeholders.

• Goal C. Sustainable Value: The IIA will generate sustainable value for members.

• Goal D. IIA as Leader: The IIA will emerge as the leading voice in integrated audit, governance, risk management assurance and control.

• Enhance the Member Experience– Member Portal & Young Professionals Initiative – Career Map & Self-directed Learning– Knowledge & Insights: CBOK

• Deliver Targeted Member Solutions– Audit Group Concierge Services– Industry & Specialty Centers– Peer collaboration opportunities

• Strengthen Chapter Support– Chapter Technology Suite– Community Portal– Chapter and Academic Programming

IIA North American Priorities in 2016

19

Exi

stin

g

In P

roce

ssFu

ture

Opp

ortu

nitie

s

Information TechnologyColleges & UniversitiesHealth ServicesGaming & HospitalityOthers

CANADIAN PUBLIC SECTOR AUDITING CENTRE

Specialty Centers & Resource Exchanges:Targeted Solutions & Resources

BCBSA Internal Audit

• Includes IT Audit Unit / Operational Audit Unit• Use of graphics to describe the control environment in

audit reports• Use of a COSO matrix in audit reports• All auditors participate in the annual Risk Assessment

process• Provide Training to BCBS Licensees

– Directors & Managers Roundtables– National Summit– New Internal Auditor Training Program– QAR manual and templates - based on the IIA guidelines

Knowledge & Insights

0%

10%

20%

30%

40%

50%

5%

46%

24% 25%

14%

41%

26%18%

Risk Management Processes

All U.S. U.S. Healthcare Only

Q: What is your organization's level of development for its risk management processes? (CAEs only)

None15%

2-Minimal25%

3-Moderate40%

4-Extensive20%

Internal Audit Involvement in Cybersecurity (among U.S. Healthcare Survey Respondents)

None 2-Minimal 3-Moderate 4-Extensive

Q: For information technology (IT) security in particular, what is the extent of the activity for your internal audit department related

to the following areas?

Source: 2015 CBOK Practitioner Study, The IIA Research Foundation

Hot BCBSA Risks

• Cybersecurity• Regulatory/Government Compliance• Data Management/Governance• Attracting & retaining top talent

NA Board Chairman’s Theme – “Make Your Mark”

• June 2015 Ia Magazine Article – All internal auditors have the opportunity to “Make Their Mark”:

– In the organization– In the profession– In the community

QUESTIONS?

Mike JoyceChief Auditor & Compliance OfficerBlue Cross Blue Shield Association, [email protected]

Thank You

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