The role of internal audit in risk management

Internal audit serves as an objective mechanism to provide boards with assurance regarding the effectiveness of risk processes and controls. While closely linked to risk management, the two functions must remain distinct: management is responsible for identifying and managing risks, whereas internal audit independently evaluates how well those responsibilities are being executed.

To maintain effective oversight, internal audit activities should evaluate and contribute to the improvement of risk management processes. Effective review timing should be dictated by changes in threats, regulations, and business conditions, utilizing ongoing monitoring to ensure risk reporting remains current. By mapping key risks to audit assignments, organizations can provide boards with a clearer view of assurance coverage and control effectiveness.