Actualiteit

For directors seeking to promote DEI in their organizations, it’s a good idea to start at the top. The April issue of Tone at the Top, “Diversity: An Accepted Business Value,” provides strong evidence that promoting diversity is a worthwhile effort because a diversified organization offers numerous business benefits — from additional skills and measurable performance improvements to broadened perspectives and connections. The percentages are poignant and the data is a driving force behind a number of regulators and stakeholders setting new DEI rules or expectations for organizations. The good news? There are a few guidelines that boards can follow in their efforts to enhance diversity. A Quick DEI DIY Checklist: Have a conversation Don’t overlook the risks Carefully consider your definition of diversity Ask the right questions Measure effectiveness Don’t just check a box Don’t add diversity then stifle it Keep in mind that internal audit can provide value throughout the process as the sole source of independent assurance within the company by performing holistic and objective reviews of the board and organization’s DEI efforts and their effectiveness.

Given the importance of IA’s role, a regular evaluation of the IA activity can give boards and audit committees confidence that the internal auditors are performing their job effectively based on the International Standards for the Professional Practice of Internal Auditing, best practices, and the board and audit committee’s specific expectations. This assessment tool offers suggestions for issues to be addressed in an evaluation based on established best practices. It is not intended as mandatory guidance, but rather as a resource that boards and audit committees can use in whole or in part to explore: The quality of the services the company is receiving from IA and the sufficiency of resources at its disposal. The level of communication and interaction with the IA team. The independence, objectivity, and skepticism of the IA team. Each section includes a series of questions in fundamental areas that boards, audit committees, and others can ask to better understand the IA activity and to develop their own plans for enhancing the input and value of this important area.

This practical guidance is part of the Risk in Focus 2021 publication. It aims to provide a concise overview of key publications and existing tools developed by the 10 European institutes of internal auditors in Austria, Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Spain, Sweden, the UK & Ireland and publications from IIA Global. This guidance is developed to help internal auditors address some of the key risks identified in Risk in Focus 2021, with the aim of contributing to the reduction of their impacts on businesses and stakeholders. Where the Risk in Focus report itself addresses the ‘WHAT-could be important to audit’, this guidance helps you address the ‘HOW-to audit’ this topic. For the 2021 edition, practical guidance and webinars will be available on the following three chosen topics from the report: Guidance Cybersecurity and data security Webinar Cyber and Data Security  Guidance Macroeconomic and geopolitical uncertainty Guidance Climate change and environmental sustainability These topics have been selected due to their current and foreseen importance for most organisations and take into consideration the needs of Chief Audit Executives to strengthen or expand their knowledge and experience in auditing these three fast-developing risks. Please keep in mind that we intentionally chose to dive into some specific components of these three risks. Whilst we have endeavored to explore what we think are the key focus areas of these risks, a thorough understanding of their application may require additional research on your part, but we aim to provide a selection of what would benefit the most to the profession in the current context. All practical guidance is designed to firstly, help practitioners learn from experienced professionals (experts, operational teams or internal audit), and, secondly, offer practitioners useful reflections that we believe are of particular interest when auditing these topics and their associated risk management processes.   About climate change and environmental sustainability Why should climate change and environmental sustainability be on your radar? Firstly, because environmental challenges are of a growing importance for all organisations. It is undeniable that this is now a strategic preoccupation for all organisations, encouraged by their internal and external stakeholders - to become more resilient to environmental risks and to directly contribute to the environmental sustainability of our society. In fact, the risk is already proven, the consequences on businesses are measurable.

This Global Perspectives and Insights provides a straightforward view to help organizations identify structures, design processes, and assign responsibilities that assist the achievement of objectives to facilitate strong governance and risk management. As a tool, The Three Lines Model is meant to be adaptive, which means that application of the model’s core elements will vary depending on the individual organization and its goals. Needed now more than ever, this Global Perspectives and Insights will clarify these essential governance elements and answer questions about implementing The Three Lines Model in different industries.

This practical guidance is part of the Risk in Focus 2021 publication. It aims to provide a concise overview of key publications and existing tools developed by the 10 European institutes of internal auditors in Austria, Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Spain, Sweden, the UK & Ireland and publications from IIA Global. This guidance is developed to help internal auditors address some of the key risks identified in Risk in Focus 2021, with the aim of contributing to the reduction of their impacts on businesses and stakeholders. Where the Risk in Focus report itself addresses the ‘WHAT-could be important to audit’, this guidance helps you address the ‘HOW-to audit’ this topic. For the 2021 edition, practical guidance and webinars will be available on the following three chosen topics from the report: Guidance Cybersecurity and data security Webinar Cyber and Data Security  Guidance Macroeconomic and geopolitical uncertainty Guidance Climate change and environmental sustainability These topics have been selected due to their current and foreseen importance for most organisations and take into consideration the needs of Chief Audit Executives to strengthen or expand their knowledge and experience in auditing these three fast-developing risks. Please keep in mind that we intentionally chose to dive into some specific components of these three risks. Whilst we have endeavored to explore what we think are the key focus areas of these risks, a thorough understanding of their application may require additional research on your part, but we aim to provide a selection of what would benefit the most to the profession in the current context. All practical guidance is designed to firstly, help practitioners learn from experienced professionals (experts, operational teams or internal audit), and, secondly, offer practitioners useful reflections that we believe are of particular interest when auditing these topics and their associated risk management processes.   About Macroeconomic and geopolitical uncertainty 33% of the CAEs surveyed in Risk in Focus 2021 cited macroeconomic and geopolitical uncertainty as a top five risk, and 8% say that this is the biggest single risk their company is currently exposed to. However, only 3% say that this is an area where internal audit currently spends most time and effort.  We have taken this as an opportunity to take a closer look at how internal audit should approach macroeconomic and geopolitical uncertainty risks. What can internal audit do to ensure that the organisations they serve are prepared for these risks?