Implementation of an effective internal control system

Scalability and automation do matter

Companies are exposed to a wide range of risks that are constantly changing due to internal and external influencing factors, but also due to increasing digitalization. Thus, they must adapt flexibly and quickly in order to mitigate risks sufficiently. For an appropriate management of enterprise risks, an effective internal control system (ICS) is necessary, which supports companies as a control and monitoring instrument to reduce risks to an acceptable level. However, as complexity increases, so do the requirements for an ICS, especially with regard to scalability. To this end, we discuss not only the basics of an ICS, but also core concepts for creating a scalable ICS, which includes automation in particular.

Aligning risk management with business strategy

Every organization must set a risk strategy that can continuously adapt to new challenges and opportunities. Integrating an enterprise risk management framework throughout your organization offers a number of benefits:

Identify opportunities and challenges
Access to an inventory of opportunities, whether good or bad, enables their clustering and categorization into useful opportunities and challenges.
Comprehensive risk
Risks that arise in one area can impact other areas and affect overall performance. A comprehensive risk management recognizes these interrelationships and therefore makes it easy to identify and manage risks across the entire enterprise.
By identifying and responding to risks in a timely manner, enterprises can maximize positive outcomes and avoid unwanted surprises and their associated costs.
Stable performance
Enterprises can anticipate risks to avoid delays, ensure compliance with project schedules and limit performance variability. As a result, disruptions are minimized, and profitability is maximized.
Advanced use of resources
Knowing risks sufficiently and prioritizing them is the starting point for making informed decisions and allocate the right level of resources accordingly.
Business resilience
The long-term viability of a company is based on its ability to anticipate and respond appropriately to complex changes and risks.

Identification of the appropriate internal control framework

An internal control framework assists in organizing and categorizing expected controls or control topics. The use of these frameworks can vary depending on the area of application. Some organizations design control frameworks for general purposes like the COSO internal control framework, while others are more specific such as the COBIT IT Control framework. The International Organization for Standards also proposed multiple standardized control frameworks for internal auditors in various domains including for quality auditing (ISO 9001) and for IT (ISO 27001). Therefore, an excellent understanding of the variety of frameworks is important in the design of internal controls tailored to the needs of the company. Our consultants bring in-depth knowledge and the necessary experience in dealing with the respective frameworks.

Automating internal controls

Automation in the ICS domain leads to high scalability. Automation can be integrated either injectively or holistically in the implementation of internal control systems. A system view as well as an individual view on controls are mandatory here. One example of many for an injective integration of automation is the continuous monitoring approach of controls through automations, which makes it possible to generate reports on effectiveness or violations of controls in real time. The implementation of the underlying automations requires a high level of technical implementation skills that our consultants bring to the table. Projects have confirmed this time and time again.


In line with the saying “less is more”, our takeaway is: Scalable internal control systems must have a high degree of injective and holistic automations.


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