A new report from the Chartered Institute of Internal Auditors said that 25 per cent of firms and public sector organisations assessed by the institute in benchmarking reviews in the last year had difficulty meeting the international standards set out by the Global Institute of Internal Auditors.As a result, boards will not be getting an “adequate overview of the effectiveness of their organisation’s risk management processes,” it said. The institute said that the role of internal audit is to provide independent assurance that an organisation’s risk management, governance and internal control processes are operating effectually. It welcomed the fact that three-quarters of organisations assessed achieved high or good levels of compliance. It was suggested, however, that the areas where improvement was needed included – developing qualitative as well as quantitative measures of how effective the organisation’s risk controls are, developing quality assurance plans that focus resources properly on the most important risks faced, communicating more effectively with the board about the approach of the internal audit team and being able to provide a view on risk controls at an earlier point in their implementation. Read more about business risk:
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