Designing an effective Third Party Assurance Framework

Third Party Assurance Framework

Situation
The Department’s Scholarships and Incentives Program faced increasing complexity in managing third-party arrangements. There was a need for a strong assurance framework to ensure effective governance, mitigate risks, and enhance program oversight. The Department sought to achieve these objectives while enabling capability uplift in assurance practices and aligning with compliance requirements.

Task
Grosvenor was engaged to design and deliver a Third-Party Assurance Framework (TPAF) tailored to program’s unique challenges. The primary objectives were to:

>       identify and mitigate risks in third-party arrangements

>       enhance governance and assurance capability at the program level

>       develop practical tools and guidance to support implementation

>       enable consistent monitoring, compliance, and reporting practices

Action
Grosvenor began the project with the Initiation phase, holding a project inception meeting with the project team to establish a clear understanding of the project’s scope, objectives, and governance protocols. This phase also involved drafting a detailed project plan, which was submitted for approval to ensure alignment with the Department’s priorities and expectations.

In the Discovery phase, Grosvenor conducted an extensive review of the program’s documents, including historical reporting, policies, and compliance guidelines. This review provided insights into the current third-party assurance environment and informed the consultation approach. A series of consultations were conducted with key stakeholders, including project teams, legal, risk, finance, and procurement representatives, to identify risks, desired outcomes, and capability gaps. These consultations, combined with a benchmark against Grosvenor’s best-practice frameworks, laid the foundation for designing an effective framework.

The Framework Design phase focused on creating a tailored assurance framework to the program’s needs. Key components included governance structures, risk assessment tools, and monitoring templates. Supporting tools, such as an assurance checklist, issues register, lessons log, and self-compliance checklist for third parties, were also developed. Grosvenor facilitated workshops to test and refine these components, gathering valuable feedback from the project team to ensure the framework met the Department’s needs.

During the Testing and Adjustment phase, the framework was piloted using program data to assess usability and identify potential gaps. Grosvenor facilitated walkthroughs and workshops with departmental staff to evaluate the framework against real-world scenarios. Feedback from these activities informed further refinements to the framework and supporting tools. Additionally, the implementation plan and training approach were updated to support a seamless adoption process.

Finally, in the Finalisation phase, Grosvenor consolidated all feedback and delivered a polished framework, along with comprehensive tools and guidance materials. A detailed handover was conducted to ensure business owners had the resources and knowledge required for successful implementation. The project concluded with a final presentation to the project team and the program executives, highlighting key considerations for the next steps and reinforcing the value of the newly developed framework.

Result
The Program’s Third-Party Assurance Framework (TPAF) enabled the Department to achieve key outcomes, including:

>       Enhanced assurance capability has been achieved as the program now benefits from structured processes for risk escalation, governance, and assurance activities

>       Tools such as the assurance checklist and self-compliance checklist improved compliance and monitoring by streamlining third-party oversight

>       Training materials and guidance ensure capability uplift through sustained knowledge transfer within the Department

>       The framework components directly contribute to alignment with objectives, supporting the program’s goals for transparency, accountability, and effective risk management

With the TPAF now in place, the Department can maintain high standards in assurance and governance, supporting better program performance and trust from its stakeholders.

Do you need a Third Party Assurance Framework? Ask Ricardo Fainbaum