Nov 1, 2013
Create Synergies between Risk Management and Internal Audit
Companies are always scanning the business landscape for the next way to get ahead, to gain a competitive advantage, and to take the next step, particularly in the area of risk management. Most companies have some form of risk management, whether the traditional silos or the more robust enterprise risk management, and their purpose ranges from protecting assets to pursuing opportunities. These same companies often have an over-looked, or at least underutilized asset, in their internal audit function. Internal audit understands the business operations and controls; however, they share a common goal with risk management, which is to improve the effectiveness of risk management. This common goal leads to a potential synergy that can help a company reach that next step in risk management. The Risk Insurance Management Society ("RIMS") and The Institute of Internal Auditors ("IIA") joint white paper highlights the why, the how, and the proof that leveraging your internal audit function in risk management can not only work, but work well.