Internal Auditor Role In Risk Management

Internal auditor encountered opportunities and pressure from the changing of corporate governance procedure. The new risk management focus provides the opportunity to occupy the organizational vacuum that was significantly improved by Turnbull. However, it has caused threat on the systems and processes rate of change which is unreasonable for traditional, compliance based internal audit role. However, internal auditor role is significant in risk management process due to their functions that spread throughout organizational boundaries.

However, there is still difficulties eventhough the new interest in the internal audit potential that contribute in corporate objectives. Pentland (2000), is trying to determine the boundaries of audit by observing the expertise rather than content among auditors in various process such

The approaches used for risk management is listed all the effects from the operational risk by categorized every operational risk events. In order to create common language and reporting as well as facilitate the aggregation of risk, it is important to use the same risk categories through out the framework.

The objectives of operational risk management framework is:

The 2nd seminar of Friends4Growth in Ho Chi Minh city with Prof. Enoch Ch'ng from SMU - Singapore Management University.

• To create a broader knowledge of operational risk issues through out the firm that related to key areas of risk.

• To enable the organization to recognized risk effectively.

• Changing the organizational environment by reducing the operational risk and improve the “culture of control” within the organization.

• Provide objective information by taking into consideration the operational risk for services available from the organization.

• To provide support in ensuring that sufficient due diligence for mergers and acquisitions

• Provide performance measuring objective.

• Avoid possible devastating