Best Resources for Conducting Risks Internal Audit
Conducting Risks Internal Audit
It is natural to feel uncomfortable when discussing top risks that internal audit firms in UAE must address. There is no way to be an expert in every subject.
1. Cybersecurity
While cybersecurity has been a topic of concern for years, the COVID-19 outbreak exposed many cyber vulnerabilities that organizations in Dubai and UAE didn’t know existed. The pandemic did not create new vulnerabilities, it just brought to light existing vulnerabilities like those associated with remote workers.
2. Data Privacy and Protection
Data is an important asset that Dubai, UAE organizations have, and it is vital to protect it. International regulations also require companies to safeguard their customers’ data. For example, recently, amazon was fined AED 3.233 billion for not complying with the GDPR, a regulation governing data privacy.
3. Third-party risk management
Most internal audit service UAE teams are not familiar with third-party risk management. The IIA has produced a practice guide on auditing third-party risk management for its members. This resource covers all aspects of third-party risk management, from contract termination to sourcing.
The “Audit Considerations” are a valuable part of the practice guide. They are scattered throughout the document. Internal audit services in Dubai should be wary of contracts that auto renew, as “the timing of auto renewal and termination notice periods might conflict or not match.” These best practice can make the difference in between a simple process review and a valuable audit.
4. Economic Conditions
Although economic conditions are currently considered a top-risk, this concept is too high to be used for an audit. Market fluctuations, inflation, recessions, talent shortages, increased competitiveness, and many other factors all make up the economy. Cost management is one the most difficult to identify risks and is often the first area auditors are requested to examine, especially when there is pressure on bottom line.
5. Regulation Changes
We have a lot of information on how audit can help to assess internal audit compliance risks. Nearly every organization is subject to regulatory compliance. Audit plans must therefore include assurance about compliance risks.
6. Talent Management
Dubai, UAE organizations in all industries and sectors share a common trait: talent management. Nearly all companies engage in the hiring, development, and termination of employees. It has been difficult to find qualified talent since the pandemic began and it has become more challenging to manage a diverse workforce. Internal audit departments are also affected by talent management. We struggle to find high-quality auditors for our teams.
KPMG has published a comprehensive overview of risks entitled 20 Key Risks Internal Auditors Must Consider Before 2020. This resource is useful for internal auditors who have to deal with a range of risks. Internal auditors in Dubai and UAE can make to assess the effectiveness of talent management. This risk is also directly faced by internal auditors, as we have earlier mentioned.
7. Business Continuity and Crisis Response
Business continuity rose to the top of risk lists early in the pandemic. Organizations struggled to find long-term work-from-home solutions that met business requirements, regulatory requirements, as well as cybersecurity concerns.
To help assess the business continuity plans of the internal audit members, the IIA developed a Business Continuity Management Practice Guide. The practice guide includes a section that discusses the role of internal audit in assessing a company’s business continuity plans before, during and after a crisis. This resource is essential reading considering the constant stream of crises that most internal audit companies in UAE are currently facing.
Risk Connections
It is important to understand the relationships between these risks. You can even imagine a scenario that includes all seven of these risks. Your business continuity plan required that employees work remotely while we operate during the pandemic. Your organization was forced to cut costs due to the COVID-induced depression.
Not all employees receive consistent training about your policies and procedures. Tense economic conditions combined with inconsistent expectations make it more difficult to choose a low cost vendor. A third party could be exposed to cyber-attacks if they are allowed to join you. Exposing employee or customer data can make you liable under GDPR. Bad press, fines and customer loss only increase the economic pressure.
How Internal Audit Firms in Dubai Can Help Your Internal Audit Function
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