Audit & Risk Management Practices - Roadmap > Modelling > Developing Assessment Models

Audit & Risk Management Practices - Roadmap - Edition September 2002

Modelling -- Developing Assessment Models

 

Develop assessment frameworks.

Developing Assessment ModelsLink to Business Scenario Maps
Related Business Maps
 Model Development
Model versioning:

What do we have to foresee to apply modifications to assessment model(s)?

  1. Do we plan modifications, checkout and release at regular intervals? 
  2. For comparison reasons, it is important to track what changes have been implemented in each new version. (Assessment overall scoring may become meaningless, but unchanged model elements remain comparable)
  3. Tracking modifications is also required when findings/actions from assessments done with previous versions have to be mapped to corresponding topics in newer versions.
Model structuring:

How do we conceive the structure of the assessment model (building blocks)?

Do we work with

  1. Themes
  2. Business Objectives
  3. Functional angle
  4. Process angle
  5. Risk angle
  6. Control angle

What kind of scoring mechanism is required?

  1. Positive or negative scoring scale
  2. Application of of weights at roll-up level (Theme, Risk Area, ...)
  3. Do individual "questions" or roll-ups have to be comparable (use of fractions)

What kind of focus is required?

  1. Risk (If yes, what kind of Risk Matrix do we need as a baseline)
  2. Effectiveness

How do we provide guidance to avoid interpretation?

 

How do we ensure that the answers collected contain measurable information?

 

How do we ensure that the answers collected relate to the business?

 

Managing model components:

Do we need to be able to manage reuseable parts/components of models?

  1. For ease of "variant" construction for ad-hoc assessments
  2. To enhance assessment scoping

Evidently, these individual compositions must be maintained according to the Model versioning logic. (Should be tracked in te model evolution requirements documentation)

 

Building Master Models:

What additional working documents/materials are required to complement the base assessment model to form a working set?

  1. Working templates required to derive answers to questions
  2. Predefined recommendations/action plans
  3. Generic documentation, such as instructions on use
  4. Scoring Interpretation
  5. etc...
Model validation:

How do we organise new development validation?

 

What approval levels are required?

 

Managing Development Work:

How do we need to practically organise to manage Assessment Model Development?

  1. Development Environment

    Models

    Components

    Templates

    Change Information

    ....
  2. Production Environment