INTERNAL USE ONLY

May 12, 2017

Cesar Souza

Audit Masters 2017

The transformation process in Group Audit

The main challenges and achievements in the construction of a modern function

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What on earth is an auditor?

3

<1 year

40

Longevity

with GA >1 year <5 years

74>5 year <10 years

32>10 year <20 years

14+20 years

2

19Native

Languages

English

Spanish

Portuguese

Malay Mandarin

Cantonese

Indonesian

German

ItalianFrench Turkish Russian

Romanian

Polish

UkrainianDutch JapaneseArabic Albanian

27Nationalities

Represented

50% 50%GALT team diversity

Argentina

Australia

Brazil

Chile

Germany

China

IndonesiaMalaysia

ItalyJapan

Mexico

Russia

Spain

United Kingdom

United StatesSwitzerland

Hong Kong Taiwan

20

APAC

25%EMEA

51%AMERICAS

24%

Distribution of

the team

39% 61%

Countries

with GA presence

incl. Co-sourcing *

Balanced

gender ratios54% 46% 51% 49%

Men Women

50% 50%

* S. Africa

* India

Zurich Group Audit

5

Our accomplishments 2014-2016

6

The beginning of the journey

OUR BUSINESS IS TRUST!

OUR WORK IS AUDIT, BUT

OUR PRODUCT IS TRUST!

TRUST IS OUR CURRENCY!

Martin Studer

Establishing the vision - charging Emotions

7

Any doubts that Pierluigi Collina has a point to make?

Internal Audit 2.0: Group Audit House

8

Why, what & how we will achieve our purpose

WHY

HOW

DE

TE

RM

ININ

GS

UP

PO

RT

ING

Group Audit Mission

Competency model and L&D to drive individual growth

Design supercharged resource model

Operational model to drive transformation and efficiency

Set red line: Objectivity & independence and act accordingly

Co-develop expectations with GAC / GCEO / GEC

Top Down-Bottom Up-

Top Down approach

TRP at core of dynamic

Internal Audit plan

Vertical scope:

Connect global with local

Include behavioral aspects

in scope and App

Deploy pervasive

analytics as standard

Structured approach for

integrated audit using SMR

skills

Risk assessment Audit planning Audit delivery

WHAT: MANDATE HOW: POSITIONING

Impact reporting to stakeholder groups

WH

O:L

EA

DE

RS

HIP

AN

D P

EO

PLE

WH

O: L

EA

DE

RS

HIP

AN

D P

EO

PLE

WHATQUALITY DELIVERY

DEPLOYING APPROPRIATE

RESOURCES

1 2 3 4 5

Co-developexpectations

GA RiskAssessment

Audit Planning

DeliveringProjects

Reporting

SOURCING PLATFORMS

• Budget/Controlling

• Source mix

• Growth of people

• GA Academy

- Technical Growth

- Soft Skills

- Leadership aspects

- Industry insights

• Operating model (including Huband Spoke)

• Professional practice/ methodology

• Technology

• Knowledge repositories

• Quality Assurance Review

9

Transformation priorities – 2014-2016Focus on improving assurance, maximizing business impact,

developing talent & improving efficiency

10

Group Audit scorecard and KPI’s

Creating the flexibility and bringing the necessary resources

The sourcing model- one critical element

11

Investments ¦ Transformation ¦ Savings

Ideal sourcing mix

Creating the

flexibility & bringing

the necessary resources PromotingRecruiting Developing

Developing talent

12

Funnel Comments Start Ends CandidatesInterview

level

Nbr of

interviewsInterview by Approval

A1/A2/A3/A4A 1

Human

Resources (HR) or

Hiring Manager

(HM)

A4B+ 3HR & HM=RCL &

BFAL

A1/A2/A3/A4A2nd level 1 RCL

2nd level 2 FAD & COO

3rd level 1 Head of Group

Audit

A1/A2/A3/A4ACOO

A4B+

HGA

* Personality online assessment (not aware if this is obligatory in all countries)

*1: Initially was set upon contract signature, however RCL considered closed as they stopped the search for new candidates upon offer acceptance.

A4B+

When candidates

passed the first

interview

When candidates

passed the 2nd

or 3d interview

(depending on

the grade)

Offer accepted

Identified

Candidates who fit the minimum

requirements as defined in the tab such

as: Competency Tier 1, Tier 2,

Certifications, Salary range fit,

Professional English, % of Willingness to

travel, International profile & Other min.

requirements

Qualified Only for those candidates that fit the

minimum requirements,

Pursued

Interviews focused on behaviour and

technical competencies & personality

online assessment *

1st level

All

Closed

Offer accepted but contract not signed

yet *1

Review all initial

CV received

Selected

candidates for

interview

Selected

candidates for

interview

When candidates

passed the first

interview

When candidates

passed the 2nd or

3d interview

(depending on the

grade)

Standard selection process (2015) Global induction program (2016)

3226

14

201620152014

Attrition in %

9

39

Oct 16May 15

Open position

Attrition & open positions

GA career path

Recruitment and promoting talent

Developing talent

13

Competency self assessment & competence model

Tier 1 business

competencies

Professional

capabilities levels

Move L&D program to the next phase- L&D- Framework

Developing Talents

14

1.1%

1,832 hours

12h /FTE

2014

4.5%

9,004 hours2015

4.9%

10,185 hours2016

Forecast

5.8%

12,061 hours

70h /FTE

2017

Plan

Structured education in hours

ZED Talks

& Web

Conferences

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Data Analytics

Dashboards:

Visualization, risk scoring & rules-testingPredictive modeling & anomaly detection:

Validate key risk variables and events

Pattern matching & link analysis:

Identify hidden patterns & relationships

Case Management:

Investigative workflow & task delegation

Leveraging analytics to identifying red flags:

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Denial

“There must be

something wrong with

the questionnaire

because our scores

couldn’t be that low”

A few things to know about change-The transformation curve

16

Y3+Y2+Y1+start

“What a bunch of

complainers. They don’t

realize how good they

have it here”

“These results are awful. I

don’t know how we will move

forward if our employees feel

this way”

“Given the changes we have

been going through, I’m

surprised they’re not even lower!”

“O.K these are our priorities

and we are going to move

ahead on these topics”

Negotiation

Anger

Depression

Acceptance

Decision

Action “I need to

ensure we let

everyone know

that this action

is driven by the

survey”

“Lets identity some quick wins

and start to understand the

other issues in a bit more

detail”

17

Q1-Opportunities to develop my

career

Q4-Diversity is valued

Q7-Discussed my questions and

ideas about the results of the

previous employee survey.

Q8-My manager has taken action

based on the feedback from the

previous employee survey.

Q9-Have seen positive changes

taking place as a result of previous

employee surveys.

VoE-Highlights- changes you have seen

Feeling the pulse every year

18

Q2-Performance evaluation not

clear

Q3-My manager is not always

listening and responding to my ideas

and concerns

Q5-Easy for people from diverse

backgrounds to fit and be accepted

Q6-Less flexible work arrangements

to balance work and home life

VoE-Challenges- what still needs to be improved

Feeling the pulse every year

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Improving the toolsReplacing the main audit system

Moving to a new platform

will:

• Enable us to optimize audit processes

and adapt to more effective practices

• Reduce the duplication of information

due to integration of platforms and

data sources

• Enable us to comply with global and

local data privacy, security and

retention requirements

• Provide the Zurich business and our

co-source partners with a secure

access to Zurich and group audit’s

applications and platforms

• Prevent business disruption due to

inadequate support for our current

platform and the decommissioning of

lotus notes

Our new platform will be modular, role-

based, fun to work and tablet enabled.

I Modular

Implement core functionality

in a modular way on

common base frame of

infrastructure

Integrate individual modules

on the base frame, ensuring

one version of truth

Embed transformation

enablers in the workflow

II Role-based

Role based workflow relevant for

each member in terms of:

functionality for audit delivery

audit documentation,

MI/dashboards

segment and BU level

information

III Fun to work with

Hassle-free

Visually appealing

Works seamlessly across

tablet/PC and online/offline

Provides a personalized view

of the application

Task trackers and workflow

allow our people to focus on

activities that add value

IV Tablet enabled

Enables secure access to

modules and MI via web

browser or specific apps

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Ambition 2020 in the four pillarsBuilding blocks

Anticipatory and fullyadaptable assurance2

017+

Consolidated skills-rich assurance2

016

Consolidated skills-rich assurance2

014

Share perspectives

2017+

Convey messages

2016

Deliver reports

2014

Differential careerenhancing experiences2

017+

Commitment topersonal development2

016

Delivering onemployment contract2

014

Acknowledged value forinvestment made2

017+

Create efficiencies to investin the function2

016

Delivering against budget

2014

IMPROVE ASSURANCE

DEVELOP PEOPLE

MAXIMIZE BUSINESS IMPACT

IMPROVE EFFICIENCY

Pervasive use of data analytics

Assessment of behavioural aspects

Professional Practice drives quality and

innovation

Relationship Management

Centres of excellence

Group Audit Way of Leadership

Group Audit Academy

Problem solving approach in our DNA

Fully embedded deployment tactics

Standardized work-flow

Hassle free supporting technology

Thank you

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