Question

Which of the following assessments of an enterprise’s operational risk monitoring       process will provide the BEST information about its alignment with industry-leading practices?

1. A capability assessment by an outside firm
2. A self-assessment of capabilities
3. An independent benchmark of capabilities
4. An internal audit review of capabilities

Answer 1

D. An internal audit review of capabilities as It’s positive to see that most internal audit functions have launched innovation and transformation activities, starting their next-generation journeys. However, more substantive progress is needed in a number of areas if early-stage next-generation internal audit models are to mature and fulfill their massive potential. Undertaking this journey requires recognition that transformation consists of more than a collection of discrete activities; becoming a next-generation internal audit function requires a new mindset and a commitment to continual evolution. Some internal audit groups are ahead of the game, including most of those that reside within companies considered “digital experts” and “digital leaders.” Among other practices, digital leaders are far more likely than other organizations to appoint internal audit innovation/transformation champions.