Internal auditors urged to focus on strategic risks
The Peninsula
It is important for internal auditors to focus on identifying the strategic risks which may lead to a significant market and values decline in a company, Ranjit Singh, Board Member of Global Institute of Internal Auditors (IIA) and Regional Managing Director of Tricor Axcelasia, Malayasia, has said during a webinar hosted by IIA Doha Chapter recently.
Speaking on the topic “Why Focusing on Strategic Risks is Important for Internal Auditors?’, Singh said: “A business survey shows that 86 percent of companies’ failures leading to significant market and values decline were caused by strategic risks. However, the proportion of time auditors spent on strategic risk is only 6 percent. It is paradoxical. We can add value only if we audit where value is, such as strategies. Internal auditors must involve in activities that directly impact their ability to create value for the organisation”. He went on to discuss several case studies of Airbnb, Disney, Netflix, Alibaba, Amazon, Didi, and Grab to identify strategic risks and their impact on companies.More Related News