Weekly Wrap – 20th February 2014

 

Hi I am Tom McLeod, Managing Consultant of McLeod Governance.

This is what I would be thinking about this week.

Oxford University Study – The Future of Employment: How Susceptible Are Jobs To Computerisation?

In a recent Oxford University study on the impact of technology on particular types of jobs, it came to the conclusion that nearly half of all United States jobs were at risk of computerisation over the next two decades.

The areas that were of most risk were those relating to transport, logistics and office roles.

The study made me stop and think as to the impact computerisation would have, could have, will have on the areas of corporate governance, risk management and internal audit.

And it is that topic that I want to explore today in this week’s Weekly Wrap.

Impact of Computerisation on Internal Audit

Firstly lets look at internal audit.

Is there anything stopping the great majority of work that is currently being done by internal audit being computerised?

Definitely the data analytic work already has been and will continue to expand.

And the work will be undertaken not necessarily by those with the skills of internal auditors but by data scientists anywhere in the world.

The innovative website, Kaggle (kaggle.com) is a great example of bringing together data scientists from all over to solve problems that were not previously not possible to be solved within one organisation.

Impact of Computerisation on Risk Management

With regards to risk management, one can say that the great majority of risk monitoring can be – and is already – automated.  So what will the future hold in this regard?

It is an interesting question and I must admit I don’t know the answer.

Impact of Computerisation on Corporate Governance

With regards to corporate governance, I suspect that that is going to be the one area that will be the hardest to automate through computerisation.

For ultimately corporate governance is the application of common sense in the operation of the organisation.

Computerisation in the Mining Industry

Now before you think that computerisation is not an issue that you will need to worry about in your career, I perhaps take you back to an example in my recent past.

Working with a major mining company, I one day stood amazed watching trains being driven thousands of kilometres away from where they were actually being operated.

I saw diggers at mine sites pulling up iron ore thousands of kilometres away again.

That was the first step of computerisation and it is fundamentally changing mining.

When will computerisation change your industry?

And when will computerisation change your profession?

DOWNLOAD OXFORD UNIVERSITY STUDY

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HOW MCLEOD GOVERNANCE CAN HELP

McLeod Governance is at the forefront of adopting new technologies in the betterment of an organisation’s control environment.

We are currently working on the development of mobile technology to put in the hands of manager key governance and risk metrics.

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