Internal control and internal audit evaluate the control system in terms of information reliability, legal compliance, asset safety, efficiency and effectiveness of individual functions and divisions. Risk management evaluates and manages the risks of not meeting the organization's objectives, including those listed above.
Internal Control and Internal Audit are an objective source of information, thereby helping the company's management to achieve its goals and accomplish its tasks in the most efficient way. The presence of adequate systems of Risk Management, Internal Control and Internal Audit is a positive signal for potential investors and lenders and increases the investment attractiveness of the company.
What is needed to create an integrated system of Risk Management, Internal Control, Internal Audit:
1. Risk culture
2. Single stakeholder
3. Clear methodology
4. Clear boundaries and elimination of duplication of functions
5. Identical levels of interest
6. Automation
At the same time, now almost everyone understands that with the proper automation level of management processes in the company, it is possible to automate the systems of Risk Management, Internal Control, and Internal Audit. The main automation blocks used for the deployment of an integrated Risk Management, Internal Control, Internal Audit system:
1. Infrastructure, including storage and access base.
2. Communication, including document flow, execution control and reporting.
3. Risk management, including quantitative assessments, GRC systems, design, business continuity, industrial safety.
4. Internal controls, including operating IT systems and external controls.
5. Internal audit, including data analysis, support for operations and management decisions, continuous audit and improvement.
Today, there are effective software solutions on the market that allow you to create integrated environments for automating the processes of Risk Management, Internal Control, Internal Audit and reporting. Those using the principle of one window, we can centrally manage the above functions through a single add-on module.
I have relevant experience in setting up Risk Management, Internal Control and Internal Audit systems in an organization. If you have questions or need help in implementing such a system, please contact me through my page: https://akonnov.ru/ or write a message through my telegram channel: https://t.me/biz_in