(viii) Preparing reports on risk for the board and the stakeholders. 2.11 The Role of Internal Audit in Risk Management 2.11.1 The Internal Auditor and the Risk Management Process The internal activity has to verify the adequacy of the risk management process that is whether management has planned and designed it in such a manner that it provides reasonable assurance that the organisation’s objectives and goals will be achieved. Risk management is a key responsibility of management. However, internal auditors acting in a consulting role can assist management in identifying, evaluating and implementing risk management methodologies and controls to address those risks (Goetzee, 2004:27). Gleim (2004:97) indicates that risk management is a key responsibility of management. To achieve its business objectives, management should ensure that sound risk management processes are in place and functioning. In this respect, boards and audit committees have an oversight role to determine that appropriate risk management processes are in place and that these processes are adequate and effective. This means that management and the board are responsible for their organisation’s risk management and control processes. Internal auditors should assist both management and the audit committee by examining, evaluating, reporting and recommending improvements on the adequacy and effectiveness of management’s risk processes. However, internal auditors acting in a consulting role can assist the organization in identifying, evaluating and implementing risk management methodologies and controls to address those risks.
(viii) Preparing reports on risk for the board and the stakeholders. 2.11 The Role of Internal Audit in Risk Management 2.11.1 The Internal Auditor and the Risk Management Process The internal activity has to verify the adequacy of the risk management process that is whether management has planned and designed it in such a manner that it provides reasonable assurance that the organisation’s objectives and goals will be achieved. Risk management is a key responsibility of management. However, internal auditors acting in a consulting role can assist management in identifying, evaluating and implementing risk management methodologies and controls to address those risks (Goetzee, 2004:27). Gleim (2004:97) indicates that risk management is a key responsibility of management. To achieve its business objectives, management should ensure that sound risk management processes are in place and functioning. In this respect, boards and audit committees have an oversight role to determine that appropriate risk management processes are in place and that these processes are adequate and effective. This means that management and the board are responsible for their organisation’s risk management and control processes. Internal auditors should assist both management and the audit committee by examining, evaluating, reporting and recommending improvements on the adequacy and effectiveness of management’s risk processes. However, internal auditors acting in a consulting role can assist the organization in identifying, evaluating and implementing risk management methodologies and controls to address those risks.
DISSERTATION_SIMON_KHAMIS_SAID_(OUT).docx