Internal Audit & Risk Consulting

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. An internal audit is conducted to properly check whether a company follows the internal protocols, regulations, and standards. Every organization has a specific set of rules/ Standard Operating Procedures (SOPs) to follow. The internal auditing ensure the employees and top officials abide by all of them for legal and operational efficiency.

An effective internal auditing system will aim to achieve:  Independent assurance of compliances  Risk Assessment and mitigation  Process improvement

A risk is described as an event or occurrence that, if left unnoticed and unaddressed, might prevent an organization from achieving its goals or objectives.

Risks are categorized in most businesses as Strategic, Operational, Financial, and Compliance Risks. Strategic risk: the risk that failed business decisions may pose to a company. Operational risk: the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Financial Risk: The possibility that a company’s cash flow may be insufficient to satisfy its obligations—that is, its loan repayments and other debts. Compliance Risk: the risk of material loss weather financial or reputational as a result of failing to operate in line with industry rules and regulations, internal policies, or recommended best practices.

A risk consultancy can advise the entity on how to incorporate risk into decision-making and transform interruptions into business opportunities. It follows a well-documented, systematic and sequential approach in risk assessment and risk management. The approach usually follows has following steps;

• Understanding the Organization
• Identify Risks
• Risk analysis
• Evaluate Risks
• Treat Risks