1. TR 07- FI- 02 INTERNAL CONTROL – basic course RISK MANAGEMENT - FIRST STEPS January 2010 EU Twinning Project TR 07-FI-02

2. TR 07- FI- 02 THE CHANGE FORMULA REVISITED P = (D x V x FS ) > R P: progress/development/change D: level of dissatisfaction with the status quo V: desirability of the proposed change i.e. vision for change FS: the first practical steps R: resistance to change and inertia THE TIPPING POINT?

3. TR 07- FI- 02 FIRST STEPS IN A TIME CONTEXT The change cycle 1 2 3 4 5 1 = shock c o 2 = deny the need m f 3 = lose comfort zone o r 4 = ‘test’ the new t 5 = establish new comfort zone time

4. TR 07- FI- 02 REASONABLE QUESTIONS FOR PEOPLE TO ASK * what is the purpose of internal control? * how will it operate in practice? * who will be affected and how? * what are the steps along the way and milestones & timescales? * is there a revised structure and new/revised roles? * what happens if there is no role for me? * where do I get help and how do I get involved? * what new behaviours, what new technical knowledge are needed? * will training & development be provided? * ELSE???

5. TR 07- FI- 02 QUESTIONS FOR YOU – THE CHANGE AGENTS – TO ASK * who leads and coordinates the implementation? * what is the structure and what processes do I need follow? * what is my role in the implementation process? * who else is involved and how do I relate to them? * where can I go for help? * what resources are available for implementation – time, equipment, money? * how do I balance implementation work with my other work? * what are the milestones and timescales? * how do I know I have achieved what I am supposed to have achieved? * ELSE???

6. TR 07- FI- 02 CONCRETE FIRST STEPS (1) Decide: where are we going? i.e. Law 5018 and PIFC Strategy Paper - Assess: where are we now? i.e. SWOT/PESTLE etc = the ‘GAP ANALYSIS’ the ACTION PLAN (& individual Ministries’ Action Plans) ACTIONS!

7. TR 07- FI- 02 EXTRACT FROM OVERALL ACTION PLAN THREE ACTUAL RECOMMENDATIONS The present PIFC Training and Guidance Department should have sufficient skills and resources to ensure the provision of a professional training service Heads of Administrations should all be encouraged to demonstrate leadership and ownership in implementing and supervising the FMC system; and to have introduced the processes to ensure that their staff are motivated to fully embrace and implement the FMC concepts Risk management should become an integral and essential part of the overall management process and appropriate risk systems should be established in all administrations

8. TR 07- FI- 02 CONCRETE FIRST STEPS (2) - factors to consider LEGAL:provisions PROFESSIONAL:internal control concepts COSO ORGANISATIONAL:project management leadership ‘SMART’ objectives resource availability risks to implementation & how to address

9. TR 07- FI- 02 GROUP SESSION 6 first steps 1 organise yourselves 2 address the questions in the course outline FOCUS YOUR THOUGHTS & RESPONSES ON: HOW TO IMPLEMENT THE 3 RECOMMENDATIONS TIPPING POINT, TIME CONTEXT, ‘REASONABLE QUESTIONS’ REMEMBER PREVIOUS GROUP SESSIONS