HOW DO YOU SET UP A SIMPLE, PRAGMATIC AND EFFECTIVE INTERNAL CONTROL SYSTEM?
Many organisations now have an internal control system or are planning to introduce one. The requirement to set up an internal control system often comes at the request of the bodies that fund or commission your organisation (sponsors, customers, investors, etc.). The question often arises as to where to start setting up an internal control system.
The internal control system is now a requirement that is becoming the norm for the governance of organisations. There is no international definition of the concept of internal control system. In Switzerland, the Guide to implementing an internal control system provides a definition of an internal control system:
Definition of an internal control system (ICS) :
"An ICS is a management tool that makes it possible to systematically achieve objectives; it encompasses all the organisational methods and measures, decreed by the management concerned, designed to ensure that procedures run smoothly".
Here are some suggested stages for setting up an internal control system:
1. Communicate internally on the benefits of an ICS
It is important that your organisation's stakeholders (managers and staff in particular) understand the benefits of an internal control system.
2. Define your process internal
An internal control system is generally based on your internal processes. It is therefore essential that these processes are documented and sufficiently clear. Our article on processes can help you with this.
3. Define the risks linked to each process
The main objective of an internal control system is to control your organisation's risks. It is therefore necessary to identify and assess the risks. There are several risk assessment methods, based on risk matrices in particular.
4. Define the controls to manage every risk
Controls must be defined in such a way as to achieve the risk management objectives you have set yourself.
5. Organise controls (who, what, when, how)
A clear and shared division of roles and responsibilities is a key factor in the success of your internal control system. Everyone involved in the internal control system must know exactly what is expected of them and have the resources (documents, information) to carry out the controls for which they are responsible.
6. Train the staff concerned on the use of the ICS
Training is a key to success. The internal control system must be seen as a tool for ensuring the reliability and robustness of the organisation. Staff also benefit in terms of quality of life and well-being at work, since roles and responsibilities are clear and risks are under control.
7. Check periodically ensure that the ICS is working properly
You should periodically check that your internal control system is working properly, in particular to ensure that all the planned checks have been carried out.
8. Identify needs improvement SCI
An internal control system lives and improves continuously. You need to document your ICS improvement needs.
9. Plan improvements
Once the improvements have been identified, we need to plan how they will be implemented (who? what? how? with what resources? how long? what priority?).
10. Implementing improvements
The improvements can then be implemented by the various departments within your company.
If you already have a quality management system (ISO 9001 or other), it may be appropriate to integrate your internal control system with it. In this way, you have a single system that meets the requirements of the ISO 9001 and national, federal, cantonal and regional internal control system requirements.
We can help you set up or improve your internal control system, integrate your internal control system with your safety management system, or improve the governance of your internal control system.
SIRIS+ is an internal control system software package that enables you to manage your internal control system (risks, processes, improvements, internal audits, regulatory compliance) from A to Z in a digital, integrated way.
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