What is the Role of Internal Audit in Risk Management?
Risk management represents policies and procedure adopted by an organization for identification, assessment, controlling, transferring and accepting operational and strategic risks. Risk management activities are aimed to protect value of shareholders / stakeholder. Internal audit is an independent and objective evaluation of internal controls with respect to each major business process. Internal audit is aimed at adding value to the business operation of a company. Companies face different types of risks. Importance ranking is different for each risk throughout the different stages of organizational development. Accordingly, risk management framework is also reviewed and updated. Most common risks faced by an organization include liquidity risk, reputation risk, interest rate risk, market risk, currency risk, operational risk, cyber security risk and strategic risk. How internal audit can help in effective risk management? Internal audit is an important...