Internal audit professionals gathered at this year's IIA conference to discuss how better risk management can protect the UK and Ireland’s organisations and the future role of regulation.

Heads of Internal Audit from across the public and private sectors met to look at how to tackle the challenges facing their profession and how internal audit can work to support a change in boardroom culture and promote more responsible risk management. 

Conference speaker and Audit Committee Chair of Coventry Building Society, Ian Pickering, talked to delegates about the reform of risk management. As a member of the Financial Reporting Council’s Auditing Practices Board, Ian has a key insight into how the future development of corporate governance in the UK is being shaped. Ian said:

"It’s clear that the failure of some boards to adequately manage risk has had a severe impact on the economy. It’s important that we improve understanding of the critical role internal audit can play in enabling companies to effectively manage risk and internal controls. If internal audit is not already actively engaged in all aspects of risk management in our major organisations then we need to look at how it can be in the future. This conference is a much needed opportunity for the profession to look at how it can raise its game to help prevent us seeing the same failures a second time around.”

As the impact of the credit crisis and recession brings renewed calls for improvements to corporate governance standards, the value of internal audit is increasingly being realised. The Institute, on behalf of its 8000 members, has contributed to the Walker review and the FRC’s review of the combined code in an effort to ensure that the management of risk works to give better protection to the UK’s economy. 

New Chief Executive of the IIA, Dr. Ian Peters, told delegates at the conference that internal audit stood to enable effective self regulation in both the public and private sectors. Ian said:

“There is a justifiable concern that the fall out from the events of the last 18 months will lead to a regulatory back-lash which extends well beyond the banking and financial services sector. Self regulation is far preferable to the heavy hand of government regulation. From health and safety through to environment protection and anti-fraud provision the regulator can take assurance from the internal auditor that processes are being followed, risks managed and necessary protections put in place. Regulators must learn to value that assurance rather than see internal audit as merely a source of additional data. We look forward to continuing to work with government and the regulators to enable this to happen.”

Photo caption: Conference speaker and Audit Committee Chair of Coventry Building Society, Ian Pickering, talking to delegates about the reform of risk management.

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Please contact Emily Kavanagh on 020 7819 6734.