Internal audit is an objective source of confidence for stakeholders, and proof that your bank is compliant and prepared for the future. Typically, an internal auditor will focus on things like reputation, growth, and corporate governance by keeping sight of controls and management, risk, and operations. The most valuable and effective internal auditors, however, go beyond those functions. They help the bank to stay aware of business trends and remain anticipatory so you are equipped and prepared for upcoming challenges, risks, and opportunities.
In the complex regulatory and economic environment, most bank management and Board members are working on business strategies that will help them remain well positioned and financially healthy. Most of the strategies relate to rolling out new products or services, improving customer satisfaction, increasing market share and digital presence, and expanding technology utilization. Every one of these initiatives is necessary for growth and all have associated risk.
By working with a good internal auditor, bank leadership can gain objective guidance, timely information and assurance to help minimize the potential impact of strategic, operational, financial, and compliance risks. Building a robust internal audit function is – and will remain – crucial to the ongoing success of the organization.
The HORNE Banking team recommends three primary ways your bank can take advantage of the internal audit function.
For banks looking for competitive advantage, internal audit may be the secret. Rather than viewing this function as a compliance exercise, it’s time for bank leadership to recognize its potential as a very real value-add that can help to minimize risk and grow the bank.
Each month, we will take a more in-depth look at what an effective internal audit function can do to help your bank innovate and prepare for the future. Don’t miss out on this actionable information.
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