PracticeAuditInternal audit to hit risk

Internal audit to hit risk

The Institute of Internal Auditors is making risk a key priority with the appointment of new president Terry Cunnington.

Link: Internal auditors urge rethink on auditors’ role

Cunnington is director of risk management for Euronext.liffe, one of the world’s largest derivative exchange businesses. He is set to pioneer risk-based internal auditing and raise awareness of the advantages this can bring to management.

Cunnington maintains that internal audit is one of the pillars of good corporate governance, but stresses that it can also add value by helping organisations achieve their goals.

The imminent COSO2 draft framework, which is intended to offer boards and management a model for evaluating risk management, is expected to push risk up the agenda.

While corporate governance will remain a top priority, Cunnington sees ERM as the next big challenge. ‘Enterprise-wide risk management (ERM) has been used for many years in some organisations, but it is likely to be more commonplace follow-ing the publication of the COSO2 framework,’ he said.

‘Internal auditors are well placed to make a major contribution to the development and operation of ERM and in doing so derive considerable benefit for their organisations. It’s not just about reporting and monitoring, its about embedding risk management into the business.’

As president he is expected to harness the expertise of the network of internal auditing professionals within the institute, which includes the heads of internal audit in the majority of FTSE350 companies and many public sector organisations.

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