1 / 27

POLITICAL CONTEXT : IMPLICATIONS FOR INTERNAL AUDIT

POLITICAL CONTEXT : IMPLICATIONS FOR INTERNAL AUDIT. Chartered Institute of Internal Auditors – Scotland Conference. Dunblane 1 / 2 November 2012. POLITICAL CONTEXT. OUTLINE BUSINESS & POLITICS - The ‘Why?’ - The ‘How?’ THE CURRENT CONTEXT - Global - EU - UK - Scotland.

alden
Download Presentation

POLITICAL CONTEXT : IMPLICATIONS FOR INTERNAL AUDIT

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. POLITICAL CONTEXT : IMPLICATIONS FOR INTERNAL AUDIT Chartered Institute of Internal Auditors – Scotland Conference Dunblane 1 / 2 November 2012

  2. POLITICAL CONTEXT OUTLINE • BUSINESS & POLITICS - The ‘Why?’ - The ‘How?’ • THE CURRENT CONTEXT- Global- EU- UK- Scotland

  3. POLITICAL CONTEXT BUSINESS & POLITICS : -THE ‘WHY?’ “Politics is the art of: - looking for trouble - finding it everywhere - diagnosing it incorrectly - and applying the wrong remedies”

  4. POLITICAL CONTEXT BUSINESS IMPACTS 1. Structure & Governance- Companies Acts- Cadbury, Higgs, Smith etc.- OFT, CC, COMP, SEC

  5. POLITICAL CONTEXT BUSINESS IMPACTS • Structure & Governance- Companies Acts- Cadbury, Higgs, Smith etc.- OFT, CC, COMP, SEC • Markets & The Market Place- Political Context: Home vs Host- Nationalising/Privatising/Re-Nationalising- Legislation: Anti-Trust, Competition, Anti-Terrorism, Consumer Protection- Trade and Cultural Barriers

  6. POLITICAL CONTEXT BUSINESS IMPACTS • Structure & Governance-Companies Acts- Cadbury, Higgs, Smith etc.- OFT, CC, COMP, SEC • Markets & The Market Place-Political Context: Home vs Host- Nationalising/Privatising/Re-Nationalising- Legislation: Anti-Trust, Competition, Anti-Terrorism, Consumer Protection- Trade and Cultural Barriers • Distribution-Regulation e.g. Polarisation/Depolarisation; ‘use by’ dates- Legislation e.g. Working hours; fuel duty acceleration

  7. POLITICAL CONTEXT BUSINESS IMPACTS • Structure & Governance-Companies Acts- Cadbury, Higgs, Smith etc.- OFT, CC, COMP, SEC • Markets & The Market Place-Political Context: Home vs. Host- Nationalising/Privatising/Re-Nationalising- Legislation: Anti-Trust, Competition, Anti-Terrorism, Consumer Protection- Trade and Cultural Barriers • Distribution-Regulation e.g. Polarisation/Depolarisation; ‘use by’ dates- Legislation e.g. Working hours; fuel duty acceleration • Products and Product Design-Financial Services: Savings, mortgages etc.- Pharma: GP vs. OTC- Retail: EU regulations, UK tax

  8. POLITICAL CONTEXT BUSINESS IMPACTS • Structure & Governance-Companies Acts- Greenbury, Cadbury, Higgs, Smith etc.- OFT, CC, COMP, SEC • Markets & The Market Place-Political Context: Home vs Host- Nationalising/Privatising/Re-Nationalising- Legislation: Anti-Trust, Competition, Anti-Terrorism, Consumer Protection- Trade and Cultural Barriers • Distribution-Regulation e.g. Polarisation/Depolarisation; ‘use by’ dates- Legislation e.g. Working hours; fuel duty acceleration • Products and Product Design-Financial Services: Savings, mortgages etc.- Pharma: GP vs. OTC- Retail: EU regulations, UK tax • Pricing & Margins-Directly: Financial Services, transport, utilities- Indirectly: retail, Pharma, construction

  9. POLITICAL CONTEXT BUSINESS & POLITICS : -THE ‘WHY?’ “Politics is the art of: - looking for trouble - finding it everywhere - diagnosing it incorrectly - and applying the wrong remedies”

  10. POLITICAL CONTEXT BUSINESS & POLITICS : - ‘THE WHY?’ - ‘THE HOW?’

  11. POLITICAL CONTEXT THE ‘DAFT LADDIE’ APPROACH - No previous experience necessary - Three key questions

  12. POLITICAL CONTEXT THE POLICY WAVE Draft Legislation Legislation Present POLITICAL PROFILE OR ISSUE Trade Associations Committee Stages Implementation Press White Paper Think Tanks Press Regulation Applied Green Paper Activists Businesses Impacted Academics TIME IN YEARS

  13. POLITICAL CONTEXT THE JERRY MAGUIRE APPROACH • Bottom Line Impact • Effectiveness Measurement • Key Milestones

  14. POLITICAL CONTEXT EFFECTIVENESS • EFFECTIVENESS VS. EFFICIENCY- Doing the right things - Doing things right - • THE FRIENDLY CRITIQUE : SOME KEY QUESTIONS- Expert vs. Available?- Early vs. When Available?- At Desk or In Brussels?- Important vs. Urgent?- Consistent Relationship or Crisis Only?

  15. POLITICAL CONTEXT ENGAGEMENT CHECKLIST Intelligence gathering : magazines - Economist- Spectator- New Statesman Intelligence gathering : blogs - Nick Robison- Robert Peston- Tim Montgomery (Conservative Home)- Luke Straw (Labour) Intelligence gathering : websites - EUROPA- Your Key Department (HMT/BIS/Defra etc) Trade Body Engagement - Are you members of all relevant bodies?- Are you on key committees?- Do you chair your key committee?- Are your attendees by executives NOT those who have the time?- Do you respond to all proposals put forward by them?- Do you submit proposals for policy changes?- Do you enter ‘general’ trade bodies: CBI/SFE/SE/IOD... Add to list and ask above questions of these bodies

  16. POLITICAL CONTEXT ENGAGEMENT CHECKLIST Departmental Engagement (SC/UK/EU) - Do you know who your sponsoring dept is?- Do you know/have you met the key official?- How regularly do you communicate with/meet them? (The Royal Dutch Shell Model)- Do you submit proposals to them: if not why not?- Do they consult you before they send out pre-proposal questionnaires: if not, why not? Political Engagement (MSP/MP/MEP) - Do you know who your local relevant representative is? Have you met them?- How regularly do they visit you/you them?- How aware are you of their key policy agenda issues/you theirs? Parliamentary Committees (Holyrood, Westminster, Brussels) - As for departments Political Consultants - Monitoring/Analysis- Contact Programme- Brains and/or legs? but be aware they should be there to educate government as to your issues with government though the poorer ones will try to educate you as to the governments’ issues with your industry.

  17. POLITICAL CONTEXT • BUSINESS & POLITICS - The ‘Why?’ - The ‘How?’ • THE CURRENT CONTEXT

  18. POLITICAL CONTEXT • BUSINESS & POLITICS - The ‘Why?’ - The ‘How?’ • THE CURRENT CONTEXT - Global

  19. POLITICAL CONTEXT • BUSINESS & POLITICS - The ‘Why?’ - The ‘How?’ • THE CURRENT CONTEXT - Global - EU

  20. POLITICAL CONTEXT OPTIONS FOR THE EUROZONE A POLITICAL SOLUTION • EU as a trading construct with a small ‘hard’ Eurozone • Realpolitik: EU as Eurozone

  21. POLITICAL CONTEXT • BUSINESS & POLITICS - The ‘Why?’ - The ‘How?’ • THE CURRENT CONTEXT - Global - EU - UK

  22. POLITICAL CONTEXT ‘INTERESTING TIMES’ • Scots referendum • Welsh sabre-rattling • Lords and English Regional Reform rejected • Tory ‘Minority Government • LibDem ‘independence’

  23. POLITICAL CONTEXT ‘HEADLINE GRABBERS’ • “An end to ‘Black Box’ Trading” (Vince Cable) • “Freedom To Defend Your Home” (George Osborne) • ‘Traffic Lights’ Get Go Ahead in Food Labelling • “Energy Companies Must Offer Lowest Tariff” (David Cameron) • “Open Mind in Rail Re-Nationalisation” (Ed Milliband) • “Formal Duty of Investors to Act in Best Interests of Savers” (Ed Balls)

  24. POLITICAL CONTEXT • BUSINESS & POLITICS - The ‘Why?’ - The ‘How?’ • THE CURRENT CONTEXT - Global - EU - UK - Scotland

  25. POLITICAL CONTEXT Business‘BOILING THE FROG’(with apologies to Christopher Brookmyre) - Devolution 1999 - Scotland Act Implementation 2013-2016 - Independence Referendum Campaign 2013-2014 - SNP Manifesto Changers 2010-2014 V

  26. POLITICAL CONTEXT THE BUSINESS VIEW “Scotland has great strengths, great national opportunities and great talent and strength in its University sector. For people to be more aware of the brand of Scotland and the capability we have, and the opportunities I think, is no bad thing in a global market” OR “Here’s tae us, wha’s like us? Gaie few, an’ they’re a’ deid!”

  27. POLITICAL CONTEXT BUSINESS IMPACTS • Structure & Governance-Companies Acts- Cadbury, Higgs, Smith etc.- OFT, CC, COMP, SEC • Markets & The Market Place-Political Context: Home vs Host- Nationalising/Privatising/Re-Nationalising- Legislation: Anti-Trust, Competition, Anti-Terrorism, Consumer Protection- Trade and Cultural Barriers • Distribution-Regulation e.g. Polarisation/Depolarisation; ‘use by’ dates- Legislation e.g. Working hours; fuel duty acceleration • Products and Product Design-Financial Services: Savings, mortgages etc.- Pharma: GP vs. OTC- Retail: EU regulations, UK tax • Pricing & Marketing-Directly: Financial Services, transport, utilities- Indirectly: retail, Pharma, construction

More Related