Learning to take control

Citation

Wade, K. and Wynne, A. (2000), "Learning to take control", Balance Sheet, Vol. 8 No. 1. https://doi.org/10.1108/bs.2000.26508aae.001

Learning to take control

Learning to take control

In this issue we review Control Self Assessment for Risk Management and Other Practical Applications, edited by Keith Wade and Andy Wynne. Control self assessment is regarded by some as yet another over-hyped management technique. However, this book provides a clear indication of how it can work effectively and improve the overall progress of an organisation, and offers a practical guide to its implementation.

Control Self Assessment for Risk Management and Other Practical Applications

Edited by Keith Wade and Andy Wynne

The title of Keith Wade's opening piece in this hefty compendium of views on control self assessment (CSA) says it all. It is called 'The Rise and Rise of Control Self Assessment'. And he gets going in a typically pugnacious way. 'Like it or not', he says, 'CSA ­ in one form or another ­ is here to stay. No matter how much you may be irritated by the hype, envious of CSA consultants' earnings, or despairing of the unthinking acceptance of claims that this is something original and life-saving, the momentum is so strong, its broad acceptance so widespread, and the reasons for its adoption in some cases so compelling that no internal auditor, line manager, senior executive, audit committee member or company director can afford to ignore its merits and impact.'

As he goes on to say, when CSA first burst upon the scene it was put down as 'a JAF ("Just Another Fad")'. It could have been exactly that, something which consultants saw as their latest sales gimmick and something which only later would be found to have hidden limitations. But it does appear to be here to stay. The whole risk management revolution has been extraordinary and CSA is at the heart of that. The key, as Wade is quick to point out, is that it has to be a management tool rather than something which is just another part of an internal auditor's tool kit. By putting CSA into the main management stream it becomes something else. It moves to the heart of a company.

In fact Wade provides exactly the sort of wording which would convince anyone about the need for CSA to be at the centre. He writes: 'This is the ultimate form of CSA. Thank you very much for helping and showing us the way. But you can leave it to us now. Call in from time to time; we would still welcome the occasional objective opinion, impartial advice and practical assistance from experts such as yourselves. And naturally we recognise your right and duty to provide independent assurance and validation to the board. But, rest assured, we can cope. You can rely on us from now on.'

That is obviously a simplification. But it gets to the heart of the issue. The great strength of CSA is that it is as much about letting people free with their own responsibilities as it is about imposing responsibilities. It should become, as the current buzzwords would have it, an embedded process. Once embedded the process runs itself. The trouble is that this then begins to sound like so many management ideas. Take business process re-engineering, for example. It was a great theory. But hardly anyone was prepared to put in the astonishing amount of rigorous work that it needed for success. So it is with CSA. To embed something is very hard work indeed. Failure will be much more frequent than success.

And that is really where this book comes in. It is built out of the contributions of 24 of the ablest practitioners around. It is theoretical. It is practical. It talks you through what should happen. It provides the practical backup. And above all it provides specialist standpoints. The contributors range across the whole spectrum, from banking and financial institutions across to weathered old veterans like Mike Haselip who pioneered much in government systems, latterly at the Department of Transport, the Environment and the Regions.

Take John Rowson's contribution, for example. His chapter looks at how the benefits of CSA are derived by a whole range of stakeholders and other beneficiaries. His experience with Guardian Royal Exchange stands him in good stead. His final section on 'What Needs To Be Considered' is an excellent and comprehensive check-list of the practical points of CSA implementation.

Likewise the chapter by Vicky Kubitscheck, drawing on her experience with the holding company of the Scottish Equitable group, provides a concise yet focused guide to how a system can be implemented in a financial services company.

There is even a section, as important as any other in the book, from Steven Barlow of Arthur Andersen. Its title is 'Winning Hearts and Minds' and that sums up much of the message of the whole book. As Barlow concludes: 'Companies that successfully implement CSA will be able to manage their risks more efficiently and effectively and this in turn will give them a competitive advantage.'

Control Self Assessment for Risk Management and Other Practical Applications is published by John Wiley at £50.00. Copies can be obtained by telephoning +44 1243 843924 from overseas, calling 0800 243407 free from the UK, or e-mail cs-books@wiley.co.uk