1. ASSET MANAGEMENT CONFERENCE Nasumba Kizito Kwatukha
Presentation by:
Nasumba Kizito Kwatukha
CPA,CIA, CISA,CFE,CISSP,CRMA,CISM,DIP-IIK
Director : Risk-com Ltd
Uphold public interest

2. Introduction
Assets:
Is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity-create value
Concept of Ownership and Control and use of Substance over form
Concept of Control over work force and footballers-Diego Costa case

3. Asset Management
Set of interrelated activities and elements of an organization whose function is to develop processes needed to ACHIEVE objectives
It involves Policies, Framework and Process formulation.
Independent Assurance and review is critical

4. Benefits of Asset Management
Enables achievement of objectives through effective and efficient management of its asset
Achievement of objectives is through the linkage of the Overall Strategy to the organization Assets which are the core Revenue generators
What constitutes value is the linkage between Assets and Strategy with clear Measurable on Asset Performance
Resultant benefits are Financial and Non-financial

5. Influencers of Assets to Keep
Nature and of purpose of the organization:
E.g. Financial Industry players should not hold Properties
Operating Context:
Assessment of your key principal Activities: E.g. Manufacturing
Needs and Expectations of Stakeholders :
Risk Appetite and Integrated Reporting
Regulatory Environment:
Matching Assets to Liabilities

6. Risk Management Defined
Process of ensuring Organization goals are achieved through Identification, Assessment and Mitigation of Risk:
Key to Asset Management because Asset is the sole generator of Revenue
Assessment involves Looking at the Likelihood and Impact:
Risk Management helps in the linking of Asset Performance to the Strategy of the organization
Mitigation involves making a decision on whether to self Insure; Retain or to transfer the risks attached to the asset.

7. Risk Management Process

8. Role of Audit in Risk Mgt
Independent Assurance on the Asset Risk Management Process
Process Owners are responsible for the Risk Management Activities
Is there a role of the Risk and Compliance Department ?

9. Areas to disclose Assertion Objective 1 Completeness/ existence
Assertion
Objective 1
Completeness/ existence
the fixed assets figure include all those owned by the client, and ensure that the asset physically exists. 2
Accuracy
Purchased fixed assets are included in the period and those sold are excluded. 3
Valuation
Ensure that the values stated are correct and based on either cost less depreciation or revaluation (current value). 5
Presentation and disclosure
Ensure all the fixed assets are shown in the financial statements so that any relevant user would have a clear perception of the financial position.

10. Risks Associated with Assets
Operational Risks: ISO 55001
2. Legal and Compliance Risk
3. Data Management : ISO 27001

11. Operational Risks Failures due to Systems, Processes and People :
Obsolescence or impairment of assets
Restructuring charges related to changes in the nature of the business
Incorrect recording of assets, hidden by complex ownership structures designed to keep assets (and related liabilities) off the books
Incorrect valuation of assets acquired as part of a group purchase
Improper recording of capital leases as operating leases

12. Operational Risks-Fraud

13. Operational Risks-Fraud

14. Operational Risks-Fraud
Increased Purchases
Complex Purchases
Employees Homes are like a second Institution
Alteration of Documents-Self copy is Incorrect
Shrinkages in physical Assets
Real Estate fraud: Land Rates, Idle land, copies
missing, DOVE

15. Mechanisms to Mitigate Risks
DOVE: Objective Market Values
Surprise Checks
Insurance :Standard Fire and Business Interruption Policies
Proper Approvals; understand Insurable Risks and Exclusions
Roles and Rights
Statistical Sampling
Review of Risk Maps and Assessments

16. Legal and Compliance Risks
Proper Asset Document and Referencing Register
Due Diligence on DOVE
Income tax Requirements: CAP 470 and CAP 476
Depreciation and Capital Allowances
Determination on when to Capitalize Expenses

17. Data- the True Asset
In God we trust All others must bring Data

18. Data at a glance Data is getting …
… bigger, faster, in more shapes and formats, from more sources … more complex to control
… more important for business, both for operational and analytical purposes
Business wants to keep focusing on the business
Data is in databases and servers, so IT is covering it
Complexity increase makes current approach tedious, error prone and unsustainable
Tweets, Facebook, IG

19. Data as an Enterprise- Corporate Asset
Data Should be treated as an enterprise asset
Data Quality should be part of everyone’s job description and a parameter of performance evaluations and incentive packages
Employees should be assigned responsibility of data
Stewardship responsibility including
Establishing and implementing of the policies
Defining data quality parameters and standards
Data classifications and processing
Address the major reasons for the failure to fill this role
Data is not recognized as an asset
Political or cultural consideration (e.g. who should be responsible for customer data)
The difficulty involved and other priorities
Data should be modeled like other assets
Data should be modeled via business or enterprise data model
Compromise between accuracy and availability of data

20. Elements of Data Strategy
Data acquisition
Data governance
Data quality
Data access
Data usage & literacy
Data extraction & reporting
Data analytics

21. Data Governance Organizational Structures & Awareness Stewardship
Policy
Value Creation
Data Risk Management & Compliance
Information Security & Privacy
Data architecture
Data Quality Management
Classification and metadata
Information Lifecycle Management
Audit Information, Logging & Reporting

22. Process of Data Management
Intake / Proposal
Review, approval, voting
Escalation
Issue management
Data Sharing
Security classification
Policy audit

23. Roles/ Competencies Involved
Domain Expert – Function consultant/ ICT
Information architect
Data steward
Data Analyst
Business Analyst

24. Nasumba Kizito Kwatukha
Q& A
Nasumba Kizito Kwatukha
CPA,CIA, CISA,CFE,CISSP,CRMA,CISM,DIP-IIK
Director : Risk-com Ltd
Q & A