Tag Archives: Organisations

Has Internal Audit Measured Up? What Do We Do Next?

The following article was first published in the Global Risk Update published by Risk Reward Limited.

Over the past few years banks have constantly been in the news, unfortunately rarely for the right reasons. A number of different scandals have hurt both the reputation and image of the industry. Foremost amongst these scandals are:

The Financial Crisis—a well documented global disaster
A Foreclosure Crisis—the reaction of banks to mortgage defaulters
Libor Manipulation—affected the most important borrowing/lending rate in the world
Rogue Trading—several episodes where unauthorised trading exposures lead to huge losses
Energy Markets Manipulation—subject of major new investigation by the SEC/CFTC
Money Laundering—a number of major banks have paid very hefty fines
Insider Trading—has involved some major figures on Wall Street and the City
Product Mis-Selling—massive fines for major banks

This does not make good reading for anyone involved in the industry but auditors in particular have real cause for concern. Continue reading

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Human Risk 2: A Much Bigger Risk Than Most People Think

Human Risk 2:  A Much Bigger Issue Than Most People Think

This is the second in a series of articles on Human Risk. The first can be found here.

It has been one week since the first article on human risk and the feedback has been more than interesting. Some believe that the management of human risk begins and ends with recruitment, retention and promotion, the traditional HR view of human risk. Others acknowledge that human risk goes beyond HR considerations but also believe that managing process risk is way more important than managing human risk.

This article will emphatically illustrate why both these assertions are wrong. Continue reading