Over the last few years, the need to manage risks has become recognized as an essential part of good corporate governance practice. This has put organizations under increasing pressure to identify all the business risks they face and to explain how they manage them. In fact, the activities involved in managing risks have been recognized as playing a central and essential role in maintaining a sound system of internal control.
While the responsibility for identifying and managing risks belongs to management, one of the key roles of internal audit is to provide assurance that those risks have been properly managed. We believe that a professional internal audit activity can best achieve its mission as a cornerstone of governance by positioning its work in the context of the organization’s own risk management framework.
RBIA (Risk-Based Internal Auditing) is at the cutting edge of internal audit practice. As a result, it is an area that is evolving rapidly and where there is still little consensus about the best way to implement it.
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