Mastering Risk Management

AUDIT COMMITTEES

The audit committee, comprising as it does, independent non-executive directors, performs a key oversight role for the board and should be the critical link between the board and both internal and external audit. In most financial sector firms, there will be a separate risk committee. However, in many firms, the audit committee fulfils both functions. It therefore acts as a catalyst for improving both oversight and risk management.

Having said that, the risk committee should work together with the audit committee to ensure that internal audit looks at the risk management function, at least every 3 to 5 years.

Audit committee and internal audit

As we said at the beginning of this chapter, the head of internal audit should report ...