IFAC results of the Risk Management and Internal Control Survey
01 March 2011
Risk management and internal control frameworks, standards and guidance should be aligned internationally, according to the results of the Risk Management and Internal Control Survey released by the IFAC Professional Accountants in Business (PAIB) Committee.
With over 600 responses from around the globe and from all types of organizations, the survey results also highlighted that:
- risk management and internal control systems should be better integrated into the governance, strategy, and operations of organizations; and
- risk management and internal control guidelines should be combined into a set of integrated guidelines, as both elements are integral parts of an effective governance framework.
As many organizations have international activities, further international alignment of risk management and internal control guidelines would benefit their operations and compliance processes, reducing costs and allowing for the comparison of these systems across borders and, thus, increasing investor confidence.
Respondents recommend that national and international standard-setting bodies and professional associations, as well as the relevant regulators, collaborate to (a) determine the major similarities and differences between the various guidelines; (b) compile leading risk management and internal control practices; and (c) consider the benefits of further integration and international alignment of regulations and guidelines in the area of governance, risk management, and internal control. Respondents would like to see these discussions lead to the establishment of an international, integrated framework. To further international alignment, existing national guidelines could be expanded or modified — with allowances made for specific national circumstances — to meet the principles of an international framework.
Press release
© IFAC
