Rashid Abu Jamous GRCP,GRCA,IPMP,IAAP’s Post

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Internal Audit | Risk Management | Corporate Governance | Policies & Procedures | Compliance

🔍 Exploring the Nuances: Traditional Internal Audit vs. Risk-Based Internal Audit 🔍 In the realm of internal audit, two distinct approaches stand out: Traditional Internal Audit and Risk-Based Internal Audit. Understanding the nuances between the two is crucial for organizations striving for robust risk management practices. 🎯 Purpose: Traditional Internal Audit primarily focuses on ensuring compliance with policies and procedures, while Risk-Based Internal Audit hones in on identifying and assessing risks to organizational objectives. 🔍 Approach: While traditional audit often follows predetermined checklists, risk-based audit prioritizes audits based on the level of risk to the organization, emphasizing areas with higher risk exposure. 🔭 Scope: Traditional audits may cover a broad range of areas including financial controls and operational processes, whereas risk-based audits target areas with the greatest risk exposure, tailored to specific organizational contexts. 📊 Reporting: Traditional audits typically provide findings related to adherence to policies, while risk-based audits offer insights into the effectiveness of risk management processes and controls, alongside recommendations for mitigating identified risks. In today’s dynamic business landscape, embracing a risk-based approach to internal audit empowers organizations to proactively manage risks, safeguard assets, and optimize performance. Let’s navigate the audit landscape with clarity and purpose, ensuring resilience and success in an ever-evolving world. #InternalAudit #RiskManagement #BusinessStrategy 💼🔒📈

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