Risk management ‘needs better board oversight’

RISK MANAGEMENT weakness could be combated by boards “getting a better grip” on overseeing the threats to their business, according to internal controls experts.

Speaking at the recent European Confederation of Institutes of Internal Auditing conference, David Landsittel, chair of corporate governance thinktank COSO, said: “Both management and board members are not satisfied with board oversight of risk management and, as a result, pressure is mounting from regulators and others to continue to enhance board oversight processes.”

Richard Chambers, head of the Institute of Internal Auditors, echoed him, saying strong risk management and internal controls are essential for long-term success.

“Internal audit is the last line of defence to ensure global assurance on internal governance to the corporate boards,” he concluded.

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