Internal audit function role in operational risk management

Abstract

PurposeThe objective of this paper is to provide a global perspective of the operational risk (OR) management framework from an internal audit viewpoint.Design/methodology/approachThis paper describes the new role of the internal audit function in reviewing the OR framework.FindingsAn efficient OR management framework will improve and reinforce the internal controls of the organization. Internal audit should be alert to the whole process of implementation of the systems for managing OR in entities.Originality/valueThis area has not been analyzed in depth to date. The paper provides a summary guide to audit of OR management frameworks in financial institutions.