Mastering Risk Management

INTRODUCTION

Independent assurance is the critical third line of defence shown in Chapter 5, Implementing the risk management framework.

It has two complementary parts – internal and external assurance. In respect of risk, the internal audit function, together with external experts, aims to help protect the assets, reputation and sustainability of the organisation, through providing independent assurance to the board on the effectiveness of the organisation’s governance, risk management framework and internal control systems, including the effectiveness of the risk function itself.

The internal audit function should challenge the risk department and the board’s insight about the key risks. One of the risk department’s responsibilities is to ...