7.4 Role of Internal Audit

Internal Audit plays a crucial role in an organization’s risk management framework by providing independent and objective assurance on the effectiveness of risk management processes. It evaluates the design and implementation of the risk management framework, identifies emerging risks and control issues, and offers recommendations for improvement.

Internal Audits help foster a risk-aware culture by promoting risk management principles and educating staff. It coordinates with other risk and control functions to ensure comprehensive risk coverage and avoids duplication of efforts.

Regular reporting to the Audit Committee and board keeps key stakeholders informed about significant risk exposures and control issues. Additionally, internal audits provide valuable advisory services to management on risk-related matters while maintaining objectivity.

Internal Audit enhances risk management by offering independent assurance, identifying risks, recommending improvements, and fostering a risk-aware culture, ultimately contributing to the organization’s resilience and success.

Adapted from “The Role of Internal Audit in Risk Management” by Arturo Navarro under Fair Dealing for Educational Purposes (Canada).