Why grc matters to the internal auditor

Internal Audit is uniquely placed within an organization to support the implementation of GRC as a framework. Audit of governance activities gives assurance to the various stakeholders about the effectiveness of different processes. Internal audit can ensure that shareholders rights are recognized, the organizational activities are socially responsible, and are aimed towards sustainable business growth.

Internal Audit can aid the management in finding the perfect balance between shareholders rights, social impact and sustainable profits. Internal audit can also assist the board in reviewing and guiding the management in defining the organizational strategy. It can also help the board in evaluation of corporate performance. Display options. Default More Most. Back to Default Settings Done. Article Preview :. Source Citation. Related Subjects Auditing Auditors.

Most of the content in audit trade publications ignores the body of knowledge in the compliance and ethics profession that has culminated in the past decade. Current audit standards on compliance and ethics including evaluating corporate culture and soft controls are weak on the specifics.

COSO should not be the final authority for the internal auditor. You cannot effectively audit what you do not fully understand. Social science research suggests that we should not rest on assumptions that form the basis of long-standing frameworks. Research is revealing that a more nuanced consideration of the features that can truly affect the culture and ethical climate at an organization.

The work of behavioral economists like Dan Ariely is providing new and powerful insights on workforce behavior. Importantly, an integrated review of GRC processes by IA can help provide assurance to the board and senior management that the entire system of governance, risk, and compliance is effective and high performing.

GRC integration can lead to simplification and ultimately to clarity in governance processes—clearly a benefit to any organization. Site powered by Webvision Cloud. Skip to main content Skip to navigation. No comments. Sentencing Guidelines as well as Justice Department and Securities and Exchange Commission criteria ; During enterprise-wide risk assessments or compliance risk assessments to weigh the risk of criminal conduct, as required for effective compliance and ethics programs; When evaluating the performance and effectiveness of the full board, board committees, and individual directors.

Key elements for success include:. Talking with other professionals who have had previous success stories with GRC solutions can help ensure your program is well supported and provide ideas about what to take advantage of or heads up on what to avoid. In essence, what is a GRC platform? Whichever name you use, ultimately helps companies effectively and securely assess, implement, and monitor organization-wide strategies for risk management.

A GRC platform enables an organization to centralize risk management, unify compliance management, and streamline internal audit in one integrated solution. Key GRC platform attributes include:.

GRC solutions are most effective when they are utilized by stakeholders across an organization to improve the productivity and effectiveness of a variety of audit, risk, and compliance professionals.

Operational Management will utilize a GRC platform to provide input into the risks, controls, issues, and mitigation factors that process owners own and manage. A modern GRC solution will give management visibility into audit, risk, and compliance with up-to-date status and custom role-based dashboards.

The Risk and Controls team and Compliance team will use a GRC solution to facilitate effective risk management practices and monitor compliance with applicable laws, regulations, and frameworks.

The Second Line will use it to support management policies, maintain risk frameworks, identify and monitor known and emerging risks, develop processes and controls, and monitor the adequacy and effectiveness of internal controls. The Internal Audit function will utilize a GRC platform to provide independent assurance over the effectiveness of governance, risk management, and internal controls.

Getting all three lines involved in your GRC platform will enable greater collaboration and visibility into risk while decreasing silos across assurance providers. Effective governance, risk management, and compliance means having a well-planned strategy and that all of your internal audit, risk, and compliance data is in a single system of record. With an integrated risk management platform like AuditBoard, organizations have a complete view of risk across the enterprise and teams can transcend silos to stay connected, aligned, and collaborate like never before.