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"Intelligent Internal Control and Risk Management": What the cover images mean

The cover of the book features some images created by me using the 3D graphics program, POV-Ray (Persistence of Vision Ray Tracing Program). This wonderful software provides mathematical precision and beautiful lighting effects. The images are colourful interpretations of illustrations from the book, or of techniques mentioned in the book. The versions below are low resolution to save you time, but if you want high resolution versions for any purpose please contact me.

Self Generating Control System. This is based on the illustration on page 24 of the book. It represents the way controls generate more controls and is a fact of life rather than a design choice. The gold circles represent controls that generate other controls, while the chocolate circles represent other controls. The passage of time is from left to right. The book explains the practical and theoretical importance of this behaviour.

Multiple applications with double loop learning. This is based on two illustrations in the book, one showing double loop learning to improve a risk control process (page 55) and the other showing multiple, varied risk control processes operating within an organization (page 53). In "Risk Management, Organization and Context", Stephen Ward pointed out how most guides to risk management are unclear about whether they are describing one monolithic process organisation wide, or multiple processes for multiple applications of risk management. I wanted to make it very clear that, realistically, we should be thinking about the latter.

Successive refinement. It's hard to write a good analysis of risk in one attempt. It's also hard to write an analysis that is both detailed enough to be interesting and useful, and broad enough to cover everything that matters. One solution to those problems is to iterate, drilling into more detail each time in the areas that the previous analyses suggest are most worth more study. This image shows circles within circles, representing progressive stages of analysis.

Risk control matrix. This is based on the example on page 73 and represents controls mapped to risks in a risk control matrix. The controls are row headings while the risks are column headings. This turns out to be far more efficient and effective than listing controls side by side with risks.

Rolling forecast lines. This represents a style of financial forecast which shows, on one graph, actual past results for a performance indicator, desired future results, statistically extrapolated results, and statistically extrapolated results adjusted for new action plans. It's a great way to make rolling forecasts useful and save time on forecasting work.

Scatter plot showing an outlier. In chapter 10 there's a lot of material about finding and correcting data errors using statistical methods. I think this is a powerful and cost effective approach that most organizations should learn more about.



If you just want to buy the book then please do so from Gower's website HERE.

  © 2008 Matthew Leitch