In today’s complex landscape, organisations face a web of interconnected risks that can escalate swiftly without effective management. Emerging audit hotspots, shifting regulations, rapid technological advancements, and geopolitical uncertainties create a challenging environment.
To successfully navigate these complexities, businesses must embrace a holistic assurance approach. Combined Assurance (CA) represents a transformative shift in how organisations manage risk. It integrates different assurance functions across the organisation, ensuring that assurance efforts are coordinated and aligned with the organisation’s risk strategy. This enables businesses to develop a comprehensive and proactive approach to risk management, breaking down silos and reducing duplication of efforts, which in turn strengthens decision-making processes.
By embracing CA, organisations can enhance risk visibility, improve efficiency, and foster stakeholder coordination and trust. This approach ensures that critical risks are managed cohesively across departments, allowing organisations to remain agile and resilient in a rapidly changing environment. CA is essential for businesses looking to not only survive but thrive in today’s risk-heavy landscape.
Some key stats
Standards and guidelines that promote Combined Assurance and the collaboration amongst the three lines in an organisation:
IIA Standard 9.5 Coordination and Reliance: The chief audit executive must coordinate with internal and external providers of assurance services and consider relying upon their work. Coordination of services minimises duplication of efforts, highlighting gaps in coverage of key risks, and enhances the overall value added by providers.
Organisation for Economic Cooperation and Development (OECD): Potential divergences between control system design and audit functions could foster internal discussions between the second and third lines of defence, encouraging the ownership of risk identification by the managers.
- IFRS Foundation: The International Integrated Reporting Framework accelerates the adoption of integrated reporting across the world with an aim to support integrated thinking, decision-making that focus on the creation of value over the short, medium and long term.
Embracing Combined Assurance: A strategic opportunity for Middle East organisations
The MENA region is at the forefront of adopting Combined Assurance, a cutting-edge programme to strengthen governance and risk management. Combined Assurance practices are actively championed by leading standards and practices, including the IIA standards, IFRS Foundation, and OECD guidelines. Embracing these practices presents a unique and strategic opportunity for organisations in the Middle East region, to not only align with leading practices but also to position themselves as pioneers in establishing a resilient risk culture.
Transforming business with Combined Assurance
Combined Assurance breaks down the traditional silos between assurance functions, fostering a culture of integration and collaboration. This unified approach ensures that all organisational levels work together to identify, assess, and mitigate risks. By aligning assurance activities with the overall business and risk strategies, organisations can better anticipate and respond to emerging threats, enabling them to:
Key imperatives for a successful Combined Assurance programme
Effective implementation of Combined Assurance requires aligning several critical elements:
Strategy
Align assurance providers with overall business and risk strategies.
Framework
Clearly define roles, responsibilities, and accountabilities.
Methodology
Establish robust guidelines for planning, execution, and reporting.
Plan
Link top risks to key controls and assurance reviews.
Reporting
Provide clear insights into the effectiveness of risk management.
Training & Development
Equip assurance providers with the necessary skills and knowledge.
PwC’s path to effective and resilient Combined Assurance
PwC Expertise in the Field
We collaborated with solutions by stc to transition their organisation from a traditional, transactional assurance model to a more strategic, data-driven approach. Discover how their Internal Audit (IA) function, with our expert guidance, evolved into a proactive, digitally advanced model. By implementing Combined Assurance, they aligned assurance providers and strengthened risk management and governance, exceeding today’s business demands. Read more about our collaboration in our latest article.
Related content
Contact us
Sherif ElSaid
Partner - Assurance - Combined Assurance Lead, PwC Middle East
Tel: +971 56 123 4567
Follow us
