Auditing Financial Institutions - MIS Training

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Briefing Day: Audit & Compliance Under Basel II Monday 14th May 2007 It is estimated that banks world-wide are going to spend around 50 billion dollars implementing Basel II, mainly by introducing huge new systems, new infrastructure and armies of new risk managers to help monitor and manage risk. Since the more definitive division of active risk management has come from internal audit over recent years, it is important that internal auditors are clear about the critical role they need to play in all of the current frenetic activity. This intensive briefing day brings together internal audit and risk experts who will share their direct experiences of Basel II implementation with you. Facilitated by: Hesham M. Hamdy, General Manager, Head of Risk Management Sector, Bank of Alexandria SANPAOLO Paul Brennan, Internal Audit Manager, Anglo Irish Bank Clive Novis, Head of IT Audit, Investec Plc Andy Dunn, Chief Auditor - Group Functions & Treasury, Alliance & Leicester Summit Agenda 08.30 Registration & Coffee 09.00 Chairman’s Opening & Group Introductions 09.15 Reviewing the Implementation of Basel II and its Implications for the Audit Function • Assessing the requirements of Basel II – what needs to change? • Governance of the implementation process • Educating business management • Preparing the supervisory audit 10.00 Putting Together an Internal Audit Programme under Basel II • Internal Audit’s overall role • Risk based analysis of Basel II compliance • Internal audit policy • Benchmarking implementation • Minimum qualitative standards • Governance structures • Expert review of advanced approach models (AMA, IRB, Market Risk) • FSA’s approach to internal audit involvement 10.45 Morning Coffee 11.15 CASE STUDY Internal Audit and Operational Risk in a Basel II Environment • Operational risk under Basel II • Providing assurance over operational risk • Internal Audit & Operational Risk - Working together • Auditing operational risk governance and the Operational Risk function Andy Dunn, Chief Auditor - Group Functions & Treasury, Alliance & Leicester 12.00 CASE STUDY Strengthening Internal Controls To Reduce Operational Risk • Understanding the importance and impact of internal controls in ORM • Making sure the internal and external audit functions totally understand ORM requirements and execute them correctly • Learning from successful practices to enhance your internal controlling ability • Exploring the difference between operational risk and internal audit Hesham M. Hamdy, General Manager, Head of Risk Management Sector, Bank of Alexandria SANPAOLO 12.45 Lunch 14.00 Managing Credit and Market Risk under Basel II • Clarifying the Basel II requirements for market and credit risk management • Understanding the types of risks involved • Devising an audit programme 14.45 Basel II Implementation and Compliance by a Leading Bank • Key implementation issues to tackle • How have risk management and measurement techniques adapted to Basel II? 15.30 Afternoon Tea 15.50 CASE STUDY Understanding What Impact Basel II will Have on Information Security Controls You will gain an understanding of how Basel II impacts operational risk from an IT perspective. The speaker will explore various reasons why Financial Institutions may not be geared to comply with Basel II requirements and suggest practical action points to enable compliance. • How does Basel II impact operational risk and therefore information security • Reasons why financial institutions may not be geared to comply with Basel II • Practical actions which should be taken to enable compliance Clive Novis, Head of IT Audit, Investec Plc 16.30 PANEL SESSION Managing Basel II Implementation from the Auditor’s Perspective • What is the role of auditors under Basel II? • Monitoring and auditing market, credit and operational risk on a day to day basis • The Supervisory Audit – what needs to be done? • Making the most of technology Paul Brennan, Internal Audit Manager, Anglo Irish Bank Hesham M. Hamdy, General Manager, Head of Risk Management Sector, Bank of Alexandria SANPAOLO Clive Novis, Head of IT Audit, Investec Plc Andy Dunn, Chief Auditor - Group Functions & Treasury, Alliance & Leicester 17.10 Close of Day To Register Call +44 (0) 20 779 8944, Fax +44 (0) 20 7779 8293, Email: mis@mistieurope.com or Visit www.mistieurope.com/bankaudit
Auditing Financial Institutions Day One Tuesday 15th May 2007 Day One Agenda 08.30 Registration & Coffee 09.00 Chairman’s Opening Remarks Graham J. Ayre, Head of UK Internal Audit, Lincoln Financial Group Graham Ayre is Head of the Internal Audit function for the Lincoln Financial Group companies based in the UK, a group that includes Lincoln Assurance Limited, Lincoln Investment Management Limited and Lincoln Unit Trust Managers Limited. Amongst my other responsibilities, he has been part of a small team of staff responsible for implementing an enhanced risk assessment process throughout the companies and determining how the companies could best satisfy the requirements of the FSA’s regulatory regime. He has also served on the team responsible for assessing the implications of the Sarbanes-Oxley Act on the Lincoln companies in the UK and what needed to be done to comply with them (NB. The Lincoln companies in the UK are owned by Lincoln National Corporation - a quoted US company which was an accelerated filer). 09.10 Meeting Audit Committee Expectations • Integration of internal audit in overall risk management framework • Business knowledge/challenging approach • Internal audit planning & reporting • Regulatory change • Adherence to IIA Standards Ian Gregory, Deputy General Manager & Head of Internal Audit, Sumitomo Mitsui Banking Corporation Europe Ian has over twenty-five years experience in Internal Audit and Compliance. He is currently Head of Internal Audit at Sumitomo Mitsui Banking Corporation Europe and is responsible for a team of 10 auditors. Prior to joining Sumitomo he was Head of Internal Audit for Barclays Private Bank for 5 years and before joining Barclays was Head of Audit at a private Swiss Bank based in London. He started his career in audit with JP Morgan then called Morgan Guaranty. Ian is a Fellow of the Institute of Internal Auditors and an Associate of the Chartered Institute of Bankers. He is also currently a member of the Banking and Financial Services Internal Audit Group management committee and was a Director of the Institute of Internal Auditors - UK and Ireland. 09.50 CASE STUDY Effectiveness of Internal Audit - Are We Measuring the Wrong Things? This session aims to discuss some of the flaws in the current definition and limitations of the standard measures of effectiveness of internal audit, and what internal auditors should focus on to develop and improve their effectiveness in their organisation. • Defining effectiveness of internal audit goes beyond the audit department • What does an organisation with an effective internal audit function looks like? • What influences the effectiveness of an auditor and the internal audit department? • Measuring effectiveness and being effective in the real world Vicky Kubitscheck, Head of Audit, Risk & Compliance, AEGON UK 10.20 CASE STUDY Changing an International Internal Audit Function Neil Lockhart, Head of Audit Wealth Management & Financial Products, SEB. Paul Marshall, Managing Director, Protiviti* 11.00 Morning Coffee 11.20 CASE STUDY Auditing Outsourced Operations: Measuring Risk of Security & Reputation • Risk assessing service providers • Information gathering and reporting • Determining what controls are appropriate • Particular problem areas and how to address them • Ongoing monitoring and governance Hilde Øiseth Nordlid, Chief Auditor for Operational Audits, Norges Bank 12.00 Applying and Auditing the International Financial Reporting Standards • Ensuring that your company is accurately represented to the capital markets • Tactics for challenging your auditors • Are you providing adequate assurance to stakeholders? • The latest audit tools & technologies • Are you receiving the added value you expect from your external auditors? • Does a lack of preparation among analysts really matter? Iain Coke, Head of the Financial Services Faculty, ICAEW 12.40 Lunch Breakout 1 Regulatory Compliance in Financial Institutions 14.00 CASE STUDY Sarbanes Oxley in a Financial Services Context Although the Sarbanes-Oxley Act is now over 4 years old, the lack of prescription in the Act is still leading to much debate as to how it should be interpreted and what needs to be done to comply with it. This presentation will seek to: • Review the latest issues concerning the interpretation of the Sarbanes-Oxley Act and the steps needed to comply with the requirements • Cover the progress made in reviewing and amending Auditing Standard No 2 • Compare the Sarbanes-Oxley requirements with those of the FSA • Offer a practical insight into the challenges facing a UK based financial services company (which has needed to report under Sarbanes-Oxley since its inception). Graham J. Ayre, Head of UK Internal Audit, Lincoln Financial Group 14.45 Session Change 14.50 CASE STUDY Impact of Basel II on Internal Audit in a Commercial Banking Environment • Objective of Basel II • Method used to achieve objective • Impact of Basel II from a banking perspective • Expected benefits to market participants Paul Brennan, Internal Audit Manager, Anglo Irish Bank Paul Brennan, BBS, MSc is Internal Audit Manager at Anglo Irish Bank. His internal audit responsibilities include Group Trading & Liquidity Management, Debt Capital Markets, Corporate Treasury Services and the implementation of Basel II. His previous role up to January 2006 was Head of Corporate Treasury Credit Risk Management. Breakout 2 Compliance in Investment Management & Insurance Investment Management 14.00 CASE STUDY Auditing Compliance • Relative roles of compliance and internal audit in the business • Relationship with risk management • Compliance obligations and audit objectives • Scope of the review • Independence and reporting lines Tony Kemp, Head of Compliance and Internal Audit, CCLA Investment Management Tony has 20 years’ experience in Internal Audit including Head of Department positions in firms covering a wide range of regulated activities. He has also been in charge of compliance for a number of years, notably for private clients at Cazenove Capital Management. Before this he was responsible for audit and compliance for the Norwich & Peterborough Building Society Group. His career includes General Manager and Director positions. Tony has an MBA and is a Fellow of the Chartered Institute of Management Accountants. Insurance 14.50 CASE STUDY Implementing IT Governance by using the COBIT Maturity Model: Challenges and Conclusions Based on Solvency II and the fact that the quantification of operational risks is very complex, Swiss Life Group decided to build up its IT Risk Management on the quality of internal controls. The basis for this was the COBIT Maturity Model. This cuttingedge case study will give you practical insights into: • Why IT Governance is important • Satisfying stakeholders • How to implement and audit IT governance • IT governance life-cycle challenges • Case study: how to implement IT governance using the COBIT Maturity Model • Summary and conclusions Urs Fischer, Vice President, Head of IT Risk Management & Security, Swiss Life Group* 15.30 Afternoon Tea 16.00 CASE STUDY Will MiFID add Complexity to Audit Responsibilities? • Internal audit’s role in checking • Internal audit’s challenges - organisational requirements (right risk-control functions, resources, - the complexity and level of details of MiFID independence, reporting lines etc) - the risk of non-harmonised European approach - monitoring processes and procedures (record keeping, best execution, - many new requirements and business approaches to adapt to suitability & appropriateness, outsourcing etc) Sonja Lohse, Head of Group Compliance, Nordea Bank After finishing her law studies at the university of Helsinki in 1980, Sonja Lohse started her banking career. She has held numerous positions within the Group as a lawyer specialised in securities legislation but also as head of custody department. In the beginning of 2000 she started to build up the compliance function in Nordea as head of Group Compliance. Sonja has been involved in several European committees around the harmonisation of European securities legislation and is currently a member of the CESR MiFID Level 3 working group. 16.45 PANEL SESSION Examining the Implications of Current and Forthcoming Regulatory Developments for Internal Auditors and their Organisations • Basel II, PSB and the Capital Requirements Directive • Sarbanes-Oxley • MiFID • Maintaining audit independence while avoiding duplication of effort • IFRS Graham J. Ayre, Head of UK Internal Audit, Lincoln Financial Group Paul Brennan, Internal Audit Manager, Anglo Irish Bank Tony Kemp, Head of Compliance and Internal Audit, CCLA Investment Management Sonja Lohse, Head of Group Compliance, Nordea Bank 17.30 Close of Day One
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Auditing Financial Institutions - MIS Training

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