Risk responsibility.

Author:Millage, Anne
Position:EDITOR'S NOTE
 
FREE EXCERPT

AS PART OF ITS EMERGING AUDIT EXECUTIVE CENTER PROGRAM, THE IIA. recently began bringing in chief audit executives (CAEs) from leading organizations to talk to key staff about their internal audit experiences and best practices. The information gleaned from these conversations has been useful in ensuring that The Institute is knowledgeable about, and is working to address, the issues most important to the audit profession.

A common topic in these discussions is risk management and how organizations are addressing it during these turbulent times. Sandra Cartie, of Bristol-Myers Squibb, and Kelly Barrett, of The Home Depot, are two audit executives who have shared their organizations' approaches with IIA staff, and they are now sharing it with Internal Auditor's readers in this month's cover story, "A New Direction" (see page 32). Bristol-Myers' strategic risk management process was recognized as a runner-up this year for the Corporate Executive Board's Force of Ideas Award in Corporate Finance.

Key to the success of the risk management processes at both Bristol-Myers and Home Depot has been the involvement of executive management and the board. In examining the causes behind the recent corporate financial failures, the Organisation for Economic Co-operation and Development stated that, "risk managers in some cases lacked status to enforce policy and red flags did not accumulate on the way to the top. Most important of all, boards were in a number of cases ignorant of the risk (i.e...

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