Alrosa has automated internal audit and risk management processes

2022: Automation of internal audit and risk management processes

On September 19, 2022, Digital Design announced the implementation of a project to implement an IT solution to automate the processes of internal audit, control and risk assessment of AVACOR in the landscape of ALROSA. AVACOR replaced the complex system of interrelated MS Excel files, which do not allow to properly build effective interaction between the company's divisions and ensure the interdependence of risks, control procedures and audit activities.

As reported, ALROSA is the largest public company in the diamond mining sector, which as of September 2022 conducts its activities both in a number of regions of Russia and beyond and unites more than 30 thousand specialists. In order to comply with Russian legislation in the field of corporate governance, as well as to assess the reliability and effectiveness of the risk management and internal control system, the company has divisions - the Internal Audit Department, the Risk Management Department and the Internal Control and Compliance Department.

To optimize the efficiency of the departments in the areas of risk management, internal control and audit, it was decided to introduce a single specialized system. As a result of the open competition, a AVACOR was chosen, and the Digital Design company became the executor of the project. The proposed and implemented solution makes it possible to significantly to automate auxiliary processes of internal audit (planning, carrying out and analysis of the results), risk management (approval of risk passports, revaluation, documentation of cases of risk implementation) and internal control (documentation of control procedures, planning and summing up test results). AVACOR includes modules that provide integration between these processes and support the possibility of applying a risk-based approach to audit projects.

In terms of internal audit automation, the following functions became available to employees: audit planning; formation and updating of risk-oriented audit model; preparation of the annual work plan of the internal audit department taking into account resource planning; conducting a full audit cycle events; reporting on the implementation of the work plan and the results of activities (statistics on the number, types, labor costs, main conclusions and recommendations, status of implementation thereof); monitoring the implementation of the corrective action plan: formation and updating of the model of competencies of employees of the internal audit department.

In terms of risk management automation, the following functions are implemented: risk identification (formation of primary passports); risk analysis; risk assessment (primary, updating of assessments, automated quantitative assessment); management of the risk register (corporate risk base); development of risk management measures (development of an action plan/control procedures); monitoring; reporting on the implementation of activities; reporting on cases of implementation of risks/incidents; taking into account the relationships of factors, risks and consequences (with display in the form of an interactive report/diagram of a bow tie, a tree of connections); Preparation of reports.As of September 2022, Digital Design specialists provide advanced technical support for the implemented solution.

AVACOR has provided a single information space in our company, combining structured data sets for integrated work, and has also become a unified system for planning audit procedures, operational tracking of risks/activities. Prior to this, we did not have such a system, so there was no possibility of building effective interaction between the company's divisions, taking into account the interdependence of risks, control procedures, audit measures. Already, we can note the benefits from the implementation of the system, expressed in improving the quality of audits/projects by applying uniform standards and templates, creating a single information space. It is worth noting the work of Digital Design specialists. Within the framework of ongoing support at a decent level, we provide improvements to the system taking into account our initiatives in the development of the function. told Yana Yasakova, Deputy Head of the Internal Audit Department of AK "ALROSA" (PJSC)

We had very different approaches to working with various types of risks and there was no unified organization system. information The development of the solution by Digital Design specialists made it possible to combine all risk registers in a single place storages and structure business processes them by their updating. This functionality was first worked out on the basis of AVAKOR, and we are pleased with how the interaction with the contractor's team was built. In the future, we plan to develop and refine the system in such a way that external users (risk owners) can also be involved in the risk management process in their own. business processes told Alexander Kalashnikov, head of the risk management department of AK "ALROSA" (PJSC)