IERP’s recent Tea Talk drew a sizeable online audience because it addressed an issue that is growing in importance in corporate circles: providing independent assurance. Speaker Ramesh Pillai, Group MD of Friday Concepts (International) shared thoughts and experiences on what risk professionals can do to add value to the risk management process, and put across the risk manager’s perspective more effectively. Independent assurance for risk management through appropriate auditing is a crucial component but many auditors were not performing the task, even though some corporate governance codes actually do require it.
Asserting that risk managers usually view things differently from internal auditors, Ramesh considered it a good thing as different perspectives and skillsets were required for the respective positions, but each could be effective in complementing the other. “Managing risk effectively benefits the whole organisation,” he said, adding that despite their titles, risk managers do not manage risks. People generally do not have a proper understanding of risk management, and tend to view it from limited perspectives. “Risk management is more than just the periodic review of a list of top risks,” he stressed. It is the effort to achieve the organisation’s objectives through appropriate risk policies and frameworks.
Because auditors and risk managers view risk management differently, auditors need to understand what risk management is about from a practical perspective. Internal audit, in its assurance role, contributes to the management of risk in a variety of ways.
18 The IERP® Monthly Newsletter December 2021