Insurance Industry Entity Level Controls - In-Person
Entity level controls (ELCs) are often difficult to identify or create but even more difficult to assess.
This CPE Training Event is designed to help internal audit and internal control professionals understand how to establish the entity level controls (ELCs) needed for MAR, other NAIC Model Laws and SOX compliance in the insurance industry. The training event will cover the regulatory requirements for ELCs and best practices for maintaining and assessing entity level controls.
The first step in establishing ELCs is to identify and clarify the organization’s objectives...its mission, purpose, its “reason for being”. These objectives should be reflected in the ELCs…the “tone at the top”, as established by management.
This involves identifying the key areas of financial reporting that are relevant to the company and evaluating the existing controls in place to ensure their effectiveness. Based on the assessment, a plan can be developed that outlines the specific controls that need to be put in place to comply with the organization's compliance requirements.
The next step is to “implement” the controls, including any necessary changes to processes, procedures, and systems. Once the controls are in place, their “operation” needs to be regularly tested to ensure they are working as intended. Detailed documentation should be kept of the controls, including the assessment, plan, implementation, testing, and any updates made over time.
It is critical to have a “control self assessment program” that regularly monitors the controls and reports their status to the appropriate parties, including management and the audit committee.
The agenda for the training event includes an introduction to ELCs and their importance in ensuring compliance and mitigating risk in an insurance organization. The regulatory requirements for ELCs, including the Sarbanes-Oxley Act (SOX) and National Association of Insurance Commissioners (NAIC) model laws requirements will be covered.
This course is designed for professionals experienced in working with internal controls and ERM programs.
This internal control training course will provide each attendee with 4 CPE Event Hours (YB). A certificate of completion will be provided.
Details on Event Presentation
The sessions will be as follows:
Monday – 1:30 p.m. to 5:00 p.m.
Offered in-person in various cities
CPE Event Highlights
This CPE event covers the following actions concerning entity level controls required for annual compliance programs:
1. Assess the company's current controls: Identify the key areas of financial reporting that are relevant to the company and evaluate the existing controls in place to ensure their effectiveness.
2. Develop a plan: Based on the assessment, develop a plan that outlines the specific controls that need to be put in place to comply with MAR requirements.
3. Implement the controls: Put the controls in place, including any necessary changes to processes, procedures, and systems.
4. Test the controls: Using a “control self-assessment program” to regularly test the controls to ensure they are working as intended and are effective.
5. Document the controls: Keep detailed documentation of the controls, including the assessment, plan, implementation, testing, and any updates made over time.
6. Monitor and report: Regularly monitor the controls and report any deficiencies to the appropriate parties, including management and the audit committee.
Learning Objectives
The Learning Objectives include:
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Understand the importance of establishing entity level controls in the insurance industry.
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Comprehend the regulatory requirements for entity level controls in the insurance industry, including the Sarbanes-Oxley Act (SOX) and National Association of Insurance Commissioners (NAIC) model laws concerning corporate governance.
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Assess the current entity level controls of an insurance organization and identify key areas of financial reporting that are relevant to the company.
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Develop a plan for entity level controls that outlines the specific controls that need to be put in place to comply with NAIC requirements.
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Implement entity level controls, including any necessary changes to processes, procedures, and systems.
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Test the entity level controls to ensure they are working as intended and are effective in detecting and preventing errors or fraud.
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Document the entity level controls, including the assessment, plan, implementation, testing, and any updates made over time.
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Monitor the entity level controls and report any deficiencies to the appropriate parties, including management and the audit committee.
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Identify best practices for maintaining effective entity level controls in an insurance organization over time, including continuous monitoring and regular updates to stay current with regulatory requirements.
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Apply the concepts and techniques learned during the training through hands-on exercises and case studies.
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Evaluate the effectiveness of entity level controls in an insurance organization and provide recommendations for improvement.
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Gain knowledge of the latest trends and challenges in entity level controls for the insurance industry.
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Key Issues on the Agenda
1. Introduction to Entity Level Controls (ELCs) and their importance in ensuring compliance and mitigating risk in an insurance organization.
2. Overview of regulatory requirements for ELCs, including the Sarbanes-Oxley Act (SOX) and National Association of Insurance Commissioners (NAIC) model law requirements for corporate governance.
3. Assessment of current ELCs: Identifying key areas of financial reporting and evaluating existing controls in place to ensure their effectiveness.
4. Planning and Implementation: Developing a plan for ELCs and putting controls in place, including any necessary changes to processes, procedures, and systems.
5. Testing and Monitoring: Regularly testing the controls to ensure they are working as intended and are effective in detecting and preventing errors or fraud.
6. Documentation and Reporting: Keep detailed documentation of the controls, including the assessment, plan, implementation, testing, and any updates made over time.
7. Best practices for maintaining effective ELCs in an insurance organization over time, including continuous monitoring and regular updates to stay current with regulatory requirements.
8. Conclusion and next steps for ongoing compliance and risk management efforts in the insurance organization.
NASBA Program Disclosure
Program Level of Understanding: Intermediate to Advanced
Prerequisites: Participants should come with a knowledge of internal control frameworks.
Advance Preparation: A number of documents will be provided in advance.
Delivery Format: On-site Training (Group-Live); Seminar (Group-Live)
NASBA Field(s) of Study: Auditing
CPE Credits: 4, based on 50 minutes of instruction per hour.Summary of the Subject Matter
The Insurance Industry Entity Level Controls CPE program is a training program designed for internal audit professionals in the insurance industry. The program provides an in-depth understanding of how to establish entity level controls for SOX and NAIC compliance. The program covers the regulatory requirements for entity level controls, assessment of current controls, planning and implementation of new controls, testing and monitoring, documentation and reporting, and best practices for maintaining effective controls.