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Current State Assessment and Target Operating Model Design for Internal Controls

Evaluating the current state and designing a target operating model for first and second-line internal controls, specifically for inventory mapping, to guide future development and ensure compliance with ICFR and COSO standards.

Current State Assessment and Target Operating Model Design for Internal Controls

Client Need

The Finance department needed expert assistance to review and strengthen their internal controls framework. The department aimed to identify, document, and improve their key controls while addressing any gaps in their processes. The primary goal was to ensure the bank's compliance with the Internal Controls over Financial Reporting (ICFR) requirements and The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Controls standards.


Our engagement was divided into two phases.

Phase 1 involved conducting a current state assessment, process mapping, and a gap analysis for the Finance department's first and second-line controls environment. Based on the insights gained, we designed a target operating model that addressed the identified gaps and aligned with the bank's strategic objectives. Additionally, we developed a comprehensive bank-wide framework and policy documentation suite adhering to ICFR and COSO standards, supporting their internal controls framework.

Phase 2 entailed coordinating the enhancement, implementation, and integration of the target operating model across various departments within the infrastructure bank. Our focus was to ensure each department's compliance with the newly devised frameworks and policies from Phase 1.

Value Added

The engagement provided the Finance department and other first and second-line functions with a robustly documented and mapped internal controls environment. The upgraded controls offered reasonable assurance that their functions and business operations complied with ICFR requirements and were in line with COSO standards.

The process mapping, gap analysis, and subsequent redesign of the internal controls environment resulted in increased operational efficiency and reduced risk exposure. Furthermore, the development and implementation of a comprehensive internal controls framework and policy documentation suite bolstered transparency and accountability across the bank's operations.

Our engagement with the multilateral infrastructure development bank strengthened their internal controls environment, ensuring ICFR compliance and alignment with COSO standards, while improving their overall risk management efficiency and effectiveness.

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