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Integrated Assurance Project is a PETRONAS Groupwide initiative as part of Project CACTUS
In 2016, Project CACTUS Lab#4 Integrated Assurance had been established as a spin off from CACTUS Project’s Cost efficiency and Process Simplification Work stream and PETRONAS Integrated Assurance Framework were agreed by ELT in Aug 2016.
Integrated Assurance Project (IAP) has been established to provide new ways in conducting assurance at all levels through a structured and consistent approach in which internal controls are documented and periodically evaluated for effectiveness
The simplification and standardization of processes is conducted through each assurance processes through elimination of redundancy and duplication and; strengthening the ownership & accountabilities at operating levels.
Redundancy and duplications for improvement were identified
Reduce Remove Enhance Introduce
Business Assurance Functions
Functional Checklist
Tiering Process(Tier 1, 2 & 3)
Key Assurance Process
Redundant Process Governance
Document
Line of Assurance
Oversight & Line of Sight
Single Masterplan
“Gemba Walk” exercise & Value Creation Processes to simplify and standardize processes towards value assurance
The overall benefits is anchored to six focused areas of CACTUS to evaluate its ROI
• 51% improvement of assurance process from 65 assurance steps to 32 assurance steps via digital system
• Reduce 235,000 man-hours (33%) for assurance programs from corporate and business. 300 programs reduced to 100 program a year.
• RM43 mil cost saving derived from overhead costs reduction for assurance programs and reduction of man-hours for assurance programs from corporate and business
• 1.9% improvement of active work hours at operating unit by reducing hours spent for audit from 4.5% to 2.7%
• Reduction of reported operational issues
CostHow to optimize cost?
How to simply processes?
CashHow to increase profit and
generate more cash?
TalentHow to identify and develop
talent?How to develop yourself and
further improve?
TechnologyHow do we be more
innovative and creative in delivering our work?
CultureHow to create better day
to day experience?
ProjectHow to deliver focused
execution?
Open
• Standardization of assurance processacross Corporate & Business
• Integrated Assurance Planning eliminate duplication and overlapping
• Consistent implementation of assurance programs at Corporate and Business levels
• Clear accountabilities and responsibilities to deliver ownership for compliance at site
• Digital technology to simply and facilitate the assurance processes and provide oversight via intelligent and real time performance visualization on effectiveness of internal controls.
• Upskill people towards for effective implementation of assurance programs at Corporate and OPU/Asset/Country.
• Inculcate compliance culture through assurance process and ownership
• Compliance to governance requirement and assurance activities providing check and balance towards delivering superior performance assets
Integrated Assurance Project involves all the Assurance Providers responsible for the 12 applicable focused risk areas as per the PETRONAS Resiliency Model
Governance Providers
1 Group Technical Data
2 Group Research & Technology
3 Group Technical Solutions(GTS)
4 Group Project Delivery(GPD)
5 Group Health, Safety & Environment (GHSSE)
6 Group Security (GHSSE)
7 Group Legal (GL)
8 Group Procurement (GP)
9 Group Human Resource Management (GHRM)
10 Group Technical Capability Management (GTCM)
Governance Providers
11 Group Strategic Communication (GSC)
12 Corporate Strategy Planning (CS)
13 Group Risk Management
14 Group Integrity
15 Group Info. Comm. & Technology (GICT)
16 Malaysia Petroleum Management (MPM) (2)
17 Group Finance
18 Group Tax
19 Group Insurance
Notes : 1) Finance is to be managed via GRC system. 2) For upstream activities in Malaysia, 2nd line assurance will be conducted in Malaysia Petroleum Management (MPM)3) Source : IA Corporate Governance as of 5/2/2018
Financial Supply ChainPlant & Facilities
Project HSELegal &
Regulatory
Human Capital ICT Security ReputationStrategy & Portfolio
A structured assurance approach based on three (3) lines of assurance that play distinct roles to ensure that the risks and internal controls are effectively managed at all levels within PETRONAS.
Three (3) Lines of Assurance is introduced for PETRONAS Assurance Programs
Assu
ran
ce
Au
dit
Regulators
External Audit
Internal Audit
Assurance vs. Audit levels within PETRONAS Assurance Programs
The new assurance process provides more ownership and accountabilities at OPU to drive self assurance programs using a structured approach for a better line of sight and oversight for effective informed decisions.
Key differences of current and future assurance process in PETRONAS
myAssurance is a web-based platform using a cloud system which provide ultimate accessibility to all assets in PETRONAS via desktop and mobile devices.
myASSURANCE is a single digital platform for all audit and assurance in PETRONAS