The Convergence of Internal Audit and Risk Management

Introduction

Internal audit and risk management have traditionally been viewed as separate functions. Today, these lines are blurring. The convergence of the two disciplines is helping organisations strengthen oversight, improve resilience, and enhance decision-making.

1. Shared Objectives in Internal Auditing

Both internal audit and risk management aim to safeguard organisational value, protect assets, and ensure effective governance. Their collaboration enhances impact.

2. Integrated Risk Assessments

Internal auditors are increasingly incorporating enterprise risk management (ERM) data into their planning. This integration ensures that audit focus areas align with the organisation’s top risks.

3. Enhancing Communication with the Board

Boards benefit from coordinated reporting on risks and controls. A unified approach reduces duplication and improves clarity.

4. Building Organisational Resilience

By combining risk monitoring with audit assurance, organisations can respond more effectively to crises and emerging threats.

5. Maintaining Independence

While collaboration is important, internal auditors must maintain independence to provide objective assurance. Clear boundaries safeguard credibility.

Conclusion

The convergence of internal audit and risk management creates stronger governance and enhances resilience. By working together while maintaining independence, both functions deliver greater value.

Call to Action:

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Source: ChatGPT