WPS transforms internal audit function and enterprise risk management
Our client’s need
Wisconsin Physicians Service Insurance Corporation (WPS) originated in 1946. As a not-for-profit health insurer, it offers individual and family health insurance, high-deductible health plans, group health plans, and benefit plan administration. WPS also provides administrative services for the US government, managing Part A and B benefits for seniors and serving US military members and their families.
Company executives wanted to strengthen the internal audit function and bolster risk management throughout the organization, so the Chief Administrative and Risk Officer called on Baker Tilly to help.
Baker Tilly solution
After gaining a deep understanding of the client’s unique situation, a cross-functional team at Baker Tilly was assembled. The team included specialists in risk, technology, executive search and staffing, and the insurance industry. Two projects were initiated to transform their internal audit (IA) function and address enterprise risk management (ERM).
In the IA project, the Baker Tilly team helped WPS:
- Assess the internal auditing skills and work output
- Identify gaps and technical training needs
- Conduct an executive search for an internal audit director
- Rebuild the internal audit function
- Develop an effective internal audit plan
- Co-source internal audits during the first year
In the ERM project, the team helped WPS:
- Develop an enterprise risk committee charter
- Determine its risk tolerance level
- Identify key risk indicators
- Set key performance metrics
- Develop a monitoring process and dashboard
- Establish a process for executive management and the board of directors to monitor ERM and effectively review reports
- Conduct an Own Risk and Solvency Assessment (ORSA) readiness evaluation
Results achieved
In addition to the outcomes of each project listed above, WPS executives experienced the following results:
- The internal audit function is now well organized and has a renewed focus
- The ERM champion received mentoring from specialists immersed in risk management
- The company now has an overall risk management framework and methodology that is aligned with the organization
- They have gained confidence in their compliance with ORSA requirements
