The Benefits of Continuous Monitoring ©June 2011, 94 pages

Business executives recognize the need to continuously monitor their business operations to limit their exposure to operational and compliance risk, especially in this environment of accelerating change and complexity. They instinctively understand that better monitoring means fewer surprises.

To better understand how companies have implemented Continuous Monitoring today, the research team interviewed executives at eleven major companies, from a variety of industries.

The research team identified a number of key findings from this research:
• CM Deployment: Leading companies recognize the importance of Monitoring, and are effectively deploying CM across functions and departments. They recognize how CM can be a precondition for achieving superior corporate performance as well as governance outcomes.
• Resourcing CM Initiatives: Continuous Monitoring programs require a company focus and a commitment of resources.  Some companies mentioned the need for Return on Investment (ROI) estimates, but others look beyond monetary justifications and focus instead of operational effectiveness and risk reduction.
• Need for CM Champion: Continuous Monitoring programs need a Champion, preferably at a senior executive level, because resources will be required.
• Internal Audit as Evangelists: Although CM is a business operations issue, Internal Auditors (IAs), due to their familiarity with Continuous Auditing (CA), often become the champions of CM programs.
• CM of Payment Streams: CM is often initiated in payment-related areas, such as Accounts Payable and Claim Payments, in which, due to cash recoveries, the ROI can be estimated.
• CM Software and Tools: There are many new CM software products available that have improved capabilities and lowered the cost of using CM.
• Expanding Applications: For all of the companies that launched a CM initiative, there was a keen desire to expand the application beyond the initial sponsoring department or division, as well as move up the maturity curve.
• Benchmarking: Each company in our sample was curious to learn more about CM is deployed in other environments and industries with a view to improving their own processes. This was also a prime reason for their participation in this research.