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Dear Member,
Value Proposition. Two words that are getting a lot of air play lately throughout the
IIA. Internal Auditors and their departments are facing some challenging times justify-
ing their role in slimmed down corporate America. Having an audit charter is no longer
the justification for existence and a sense of job security. We are now being advised to
evaluate and promote our value to our stakeholders, members of the C-suite, audit com-
mittee and board of directors.
We applaud the guidance coming our way and we have great news for our membership.
We have always focused on the value proposition and it will now be communicated in a
more direct manner. The programming schedule put together by Toula Panagakos and
her outstanding team feature training on crucial audit skills with the value added ele-
ment built-in. A prime example is the Social Media event which took place in Septem-
ber. This is one of the hottest audit topics right now and participants had an opportunity
to bring best practices back to their organizations.
I hope you can attend our two cornerstone events coming up:
November 3rd - Risk Assessment 2012 – Key Strategies and Trends with a Focus on
Adding Value. We are fortunate to be able to bring back Lynn Fountain. She has re-
ceived rave reviews in her previous appearances for the chapter teaching how to imple-
ment continuous monitoring.
December 6th - Operational Auditing – Best Practices in Demanding Times. We are
very happy to have Mike Jacka. Mike is Senior Audit Manager for Farmers Insurance
and a Leader for IIA Seminars. Most people are familiar with his sharp wit found in the
“From The Mind of Mike Jacka” section of Internal Auditor.
Brian Babendir
Chapter president
PRESIDENT PERSPECTIV ES
Inside this issue:
President Perspectives 1
Leaders you should know:
Philip W. Bertram 2
Social Media – What We Need
to Know as Auditors 4
5 Misconceptions CFOs Hold
About LinkedIn 5
The Chicago NorthWest Metro I IA Chapter
THE NORTHWEST NEWS NEWSLETTER OCTOBER 2011
ISSUE 2 , VOLUME 1
Upcoming Events
10/13 - ISACA Monthly Meeting: Internal Control Implications of Middleware Technologies
10/24 - Tao of Everest, McGladrey - Schaumburg
11/3 - Risk Assessment 2012 – Key Strategies and Trends with a Focus on Adding Value.
12/6 - Operational Auditing – Best Practices in Demanding Times.
LEADERS YOU SHOULD KNOW: PHILIP W. BERTRAM, CPA, CIA, CFE
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How did you choose Internal Audit as a career? I chose Internal Auditing as a career because it allowed me to serve others effectively. Through internal audit, I devel-oped business acumen and was not narrowly focused as I perceived I would be as a financial statement auditor, re-port preparer or controller. It offered an opportunity to work across the business and in a variety of businesses, develop listening and leadership skills, and learn from peo-ple throughout the world. It allowed me to serve others first and help them and their businesses improve. In doing so, I grew, too. It continues to challenge and excite me as I seek to help younger auditors develop and succeed.
What was it like being Chapter President? I enjoyed being an IIA Chapter President and the personal development challenge it presented. I enjoyed learning how to serve others without worrying what might be in it for me.
Through the experience, I learned the importance of:
Having and communicating a vision effectively,
walking the talk, so that my behavior modeled what I wanted others to do,
motivating others by delegating and trusting them to perform.
promoting change and challenging others to grow,.
developing listening and collaborative problem solving skills.
encouraging fellow IIA members, so that they realized the value of volunteering and sharing their experience with others, and
networking and building relationships for one’s ca-reer.
What do you believe are the current challenges internal auditors are facing? Internal Auditors face three key challenges today:
1. Staying relevant and carving out where internal audi-tors serve best. The Sarbanes-Oxley Act of 2002 set the professional practice of internal auditing back at least ten years. It diverted our focus from value adding operation and control improvement efforts to compli-
ance related control and keeping the regulators and external auditors happy and at bay. We lost focus on solving business problems practically, and on being that extra set of eyes for management by providing risk-based assurance and operational improvement ser-vices. We also failed to develop the next generation of auditors that could focus on improving governance, internal control, profitability, and cash flow practical-ly. Today, we continue to work to balance the necessi-ty of compliance with the need to provide value-adding risk, governance, compliance and process improve-ment services.
2. Addressing ever widening expectations. With stock-holders, regulators, and boards seeing risks every-where and few with the independence to evaluate and monitor business performance, internal auditors contin-ue to see more topics enter their risk universe. To re-spond, Internal Auditors need to understand enterprise risk and how to mitigate and manage that risk; and fo-cus on the high risk, high payback risks of their busi-ness. They need to be where the action occurs and business value can be improved. They need to balance that purpose against increasing regulation and the need to perform compliance only activities that add limited value.
3. Continually doing more with less. In difficult economic times, with many remotely distributed processes and increasingly computerized activities, internal auditors needs to remain nimble, providing services quickly and repeatedly with fewer, but more capable re-sources. We need to shorten the audit cycle by gather-ing groups together to facilitate change and process improvement. We need to use predictive analytics and the power of software analytics to identify problems sooner. We need to remember to always solve prob-lems collaboratively, and to communicate effectively across the entire business. And as always, we continu-ally need to find ways to communicate with manage-ment and the board more frequently, concisely and effectively.
What are the opportunities that Internal auditors have to make in their organizations? Internal Auditors always need to make opportunities to sell the value they offer, provide practical and effective consult-ing services, and prove they can be trusted advisors on key topics, like ERM, Mergers & Acquisitions, governance, and practical business process improvement. These opportuni-ties only present themselves when internal auditors act as
(Continued on page 3)
The Northwest Metro Chapter of the Institute of Internal Auditors invites you to meet and hear: Ian Woodall, Accomplished Mount Everest Climber. Embark on an emotional and uplifting storytelling experience, climbing to the top of the world and summiting….twice.
Date: Monday, October 24th, 2011
Time: 2:00 to 4:00 pm
Location: McGladrey office (20 N. Martingale Rd., Schaumburg, Illinois)
Cost: $10
Leaders you should know
A LIFE LESSON IN PRA CTICAL LEADERSHIP - THE TAO OF EVEREST
CAREER OPPORTUNITIES If your company is looking to fill an audit related position , we can post a short announcement in this section.
We will publish the Title, employer name and who to contact.
Staff Auditor, at Walgreens. Contact Meg Reedy at [email protected]
Senior Auditor, at Walgreens. Contact Meg Reedy at [email protected]
Staff Auditor, Sears, Kris Shellum-Allenson @ [email protected]
Senior Auditor, Sears, Kris Shellum-Allenson @ [email protected]
Grant Thornton is interested in talking with Internal Audit professionals who are seeking a career in IT risk advisory and business consulting. Please contact Colleen Johnson, Recruiting Manager at col-
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business people and not a police force. We need to be practical, consider a variety of alternatives, and show we understand what drives our business, while working to en-sure effective governance and control.
What advice do you have to the people reading the newsletter? I have three thoughts for our readers.
First, become involved in serving others. By helping others selflessly, whether in a community, charity, church, or pro-fessional organization, you will always receive more than you give.
Second, be responsible and accountable for yourself. De-velop your “Accountability” skill. When you see a problem or opportunity to help, do as authors, Roger Connors and Tom Smith state in their book, Change the Culture, Change the Game, ask “What else can I do?” and then “See It, Own It, Solve IT, Do It!” Be part of the solution, not part of the problem.
Finally, learn how to network and listen effectively. If you develop these skills, you will always have friends and peers to turn to in good times and in bad. Your interest in them will make you interesting to them and they will help when-ever you need it.
(Continued from page 2)
Register
here
ABOUT THE AUTHOR
Erika Del Giudice is with Crowe Horwath LLP in the Chicago office.
For more information on this topic, please visit:
www.crowehorwath.com/socialmedia.
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Social media channels such as Face-book, LinkedIn, and Twitter provide an enormous opportunity for organizations to expand their global audience, build employee and brand loyalty, and com-municate with customers. With this opportunity, however, comes in-creased risk. One of the most poten-tially damaging risks from social media can be to an organization’s reputation. Other possible issues include legal, employment, and information security risks. As auditors, when reviewing a social media program, we need to consider some key elements. Start by reviewing these six components of an effective social media program: Has social media been incorporated into the overall business strategy? Has a multidisciplinary team been engaged? Developing a social media risk man-agement strategy for how an organiza-tion is using social media to meet the goals and objectives is crucial to reap-ing the benefits of social media. Since social media activity affects a wide range of functions, senior representa-tives from human resources, legal, in-formation technology, marketing, risk management, public relations, compli-ance, and any other affected functions should be brought together into one team. Has the organization documented current and intended social media use? The multidisciplinary team should de-fine how the use of social media aligns with organizational objectives, and
each department should report how it uses or intends to use social media in the future. Did the organization perform a risk assessment?
The team should conduct a formal re-view of risks associated with social media. Based on the information yield-ed by the documentation, this risk as-sessment identifies and quantifies the various risks. The multidisciplinary team should also determine what steps, if any, already have been taken to control or mitigate risks such as def-amation of the company, its products or leaders.
Have current policies been expand-ed to include social media and im-plement safeguards? Do the poli-cies include any guidance from ap-plicable regulations?
Organizations should review and en-hance current policies to cover the use of social media and include any provi-sions required by regulatory bodies. Guidelines should include appropriate and inappropriate employee use of social media and the organization’s human resources policies, information security policies to protect information, marketing and communications poli-cies, and vendor management policies.
Has the organization developed a social media training program? Has training recently taken place?
Even the best policies will be ineffec-tive if employees don’t understand them. It’s critical that organizations constantly educate their workforce on
their social media policies. Ongoing training sessions should provide exam-ples of appropriate and inappropriate communications and actions, highlight the constant threats present on social media sites, and make distinctions be-tween the positive and negative use of the medium.
Does the organization monitor so-cial media channels? Is an incident response program in place to ad-dress negative comments?
Organizations should consider how they will stay current on social media chatter that might have an impact on their objectives. Social customer rela-tionship management (CRM) tools, composed of software products and vendor services, help with monitoring public channels for social media chat-ter that affects the organization.
Organizations that formally assess the risks of social media and implement strong guidelines that promote its re-sponsible use will be better equipped to reap the benefits of this new medi-um.
Social Media – What We Need to Know as Auditors by Erika Del Giudice
5 Misconceptions CFOs Hold About LinkedIn by Cindy Kraft
USER GROUPS
Web 2.0 technology has taken the world by storm and in the process has taken many senior executives by complete sur-prise. In my conversations with finance leaders, I often hear a mix of interest, confusion, intimidation and even dismissal of social media in general and LinkedIn in particular.
I can certainly understand confusion and intimidation, but top-notch executives dismiss the value of this technology out-of-hand at their own peril. Listen to what executive recruiter Wayne Mitchell says: "LinkedIn is no longer an option, it's a must!"
So let's look at some of the misconcep-tions keeping CFOs and other senior fi-nance executives from leveraging the power of LinkedIn.
1. 'I don't know what it is, and I doubt it's necessary.'
The primary misconception around LinkedIn is exactly what it is. Although it does have a "job search function," LinkedIn is really a business networking site. Since it is quite likely you will be look-
ing for a new opportunity at some point, networking for both your career and your business are necessary. LinkedIn is a net-working site, so it would follow that it is indeed necessary.
A recent survey of senior-level executives revealed the following:
The methods of job search deemed most effective by C-suite and senior-level exec-utives alike are both networking (an aver-age 55 percent) and leveraging former relationships (average 40 percent).
And networking is most effective when it is not rooted in "need."
If you're not in active job search mode, that makes your power and positioning on LinkedIn even greater. It is far better for executives to think about proactively rais-ing their visibility long before they need to. Recruiters find something innately appealing about passively-positioned can-didates — winning the trophy candidate equates to another feather in their cap and a notch up the reputation ladder.
More importantly, though, is thinking
about how Web 2.0 technology is trans-forming the way in which we interact with others and the limitless interactions it affords.
Many of you will remember the old corpo-rate bio packages companies assembled. The package contained a bio on the com-pany as well as each of its senior execu-tives. When an interested party called, the package was printed and mailed. Or, even longer ago, many marketing / advertising dollars were invested in printing hundreds of these packages because volume printing equals better pricing.
Fast-forward to the 21st century. Today,
the entire executive team and the compa-
ny can be found on LinkedIn by anyone
and everyone. The advantage to the entire
executive team showing up on LinkedIn is
that it gives the company credibility,
backed by the integrity and reputation of
its transparent executive leadership team.
2. 'Having my name there is enough.'
Read the rest of the article online
at BusinessFinance.com
Page 5
THE NORTHWEST NEWS
Joining or starting a User
Group is an opportunity to
connect with peers while im-
proving your technical exper-
tise with the help of colleagues.
For example, ACL User
Groups are user-run and user-
administered. Membership in
the Group ranges from 15 to
150, and most meet face-to-
face quarterly or bimonthly
and/or communicate online.
Many Groups are not led by
one person but by a team of
people sharing the responsibili-
ties.
ACL’s User Group support
website includes information
on starting or locating a User
Group, sample by-laws and
FAQs. The site serves as a re-
source for customers to con-
nect and network within their
local communities.
ACL User group website
www.acl.com/usergroup
A group of Paisley’s GRC us-
ers, led by Baxter’s Audit team,
started a meeting with the goal
to sh a re expe r i ence s ,
knowledge and “best practic-
es”. While still in its infancy,
the group has held several
online meetings and a face to
face meeting. This group is
u s e r - r u n a n d u s e r -
administered. At the moment,
meeting schedule is ad-hoc
however communication via
email is more frequent. For
more information contact
T o d d M i l l e r ,
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Participate in The IIA's 70th Anniversary Photo Campaign
The year was 1941 and a group of 24 men had set out to make the internal audit profession known to the world. The Institute of Internal Auditors was born and is still going strong 70 years later! You can be a part of this celebration by joining our “70th Around the World” photo campaign. Participation is easy. Simply print out our 70th anniversary icon, take a photo holding it at a local landmark or place of interest, and upload it to our Facebook page at www.facebook.com/TheInstituteOfInternalAuditors . You can also send it to [email protected]. To download the logo, visit www.theiia.org/theiia/the-iias-70th-anniversary/help-us-celebrate . We're looking forward to seeing "70" around the world!
Chapter Member recognition
Social Event
chapter new members, since May 2011
Board members
Brian Babendir President
Mark Alexander Academic Relations
Elliott Bujan Communications
John Turner Research, Publication and Certifications
Matthew Budy Operations
Frank Moriarty Enterprise Relations and Advocacy
Brian Duffy Membership
Curtis W. Siegel Director of Forums
Angela Banks-Buford Administration
Toula Panagakos Programs
Oliver J. Tang Finance
Term expiring in 2012
Tami McLane Michael Heraty
Sharon Bell Tracy Heming-Littwin
Term expiring in 2013
Frank Moriarty Adewale Ademokunla
Earl Potjeau James A. Ruzicka
Governors
CHAPTER SITE: WWW.THEIIA.ORG/NORTHWESTMETROCHICAGO
EMAIL: [email protected]
LINKEDIN: … we need you to coordinate our page, send us an email
Page 7
THE NORTHWEST NEWS
Doralyn Wilson United States Postal Service
Hsueh-Tzu Yang Baxter Healthcare Inc
Amy Calhoun Baxter Healthcare Inc
Trenille Brewer-Moore Takeda Pharmaceuticals NA
Thomas Paar Crowe Horwath LLP
Mohammed Ibrahim W W Grainger Inc
Brian Hartnett
Magdalena Migalska Motorola Solutions, Inc.
Gary Christie Crowe Horwath LLP
Justin Lin Baxter Healthcare Inc
Erica Pasterski W W Grainger Inc
Jane Park Crowe Horwath LLP
Kevin Kiesel Career Education Corporation
Nancy Poloyko Discover Financial Services
Donald Ross Underwriters Laboratories Inc
Charles Pace Crowe Horwath LLP
Mariya Ivanova
Sabrina Renwick Baxter Healthcare Inc
Greg Williams VW Credit Inc
James Toland Argo Group US Holdings
Nancy Gonsiorek
Ami Zeman Allstate Insurance Company
Hellee Johanson Allstate Insurance Company
Dennis Lalama Experis Finance
Lawrence Schaub Crowe Horwath LLP
Daniel Williams
Erin Daniels W W Grainger Inc
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