Internal Audit Gets Needed Guidance on Assessing Risk Management

The Institute of Internal Auditors has released a new guide to help internal auditors assess the risk management process, one of the fundamental audits that internal audit must conduct.

The IIA says the latest practice guide will help chief audit executives navigate an evolving risk management environment and deliver on board and senior management expectations that adequate levels of independent assurance and advice are provided by internal audit as to the effectiveness of risk management processes and strategies.

The guidance aids internal audit in developing approaches to review and assess risk management while also taking into account various levels of maturity. It provides internal auditors with ideas for evaluating the effectiveness and contributing to the improvement of risk management processes. The guide also discusses how to communicate assurance and insights to stakeholders on the effectiveness of risk management, its maturity level, and related issues and challenges.

Topics Include:

• The need to perform audit engagements of risk management activities.
• The key components of an effective risk management process.
• The development of an approach that takes into account the business environment, the level of maturity, and regulatory environments.
• The collection of necessary information to determine the scope of the audit engagement of risk management activities.
• The evaluation of the effectiveness of risk management processes.
• The improvement of risk management processes.

IIA members can download the guide and nonmembers may purchase the supplemental guidance by visiting the IIA Bookstore.