Mastering Risk Management

INTERNAL AUDIT AND RISK MANAGEMENT OVERSIGHT

Internal audit provides assurance to the board on the first and second lines of defence. Regarding the first line, it provides assurance that controls are working effectively and are appropriate to the risks of the organisation. As for the second line of defence, oversight functions such as risk management ensure consistent application of the risk management framework and provide challenge to business operations. Internal audit provides assurance that the oversight functions are working effectively, picking up on adverse changes in the risk profile and that these are being reported. As can be seen from ­Figure 13.1, oversight covers both financial and non-financial controls, including the people risks ...