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March 6, 2011

IFAC recommends collaboration to manage risk

Risk management and internal control
frameworks, standards and guidance should be aligned
internationally, according to results of a survey carried out by
the International Federation of Accountants’ (IFAC) Professional
Accountants in Business (PAIB) committee.

The findings were based on results of a survey
of more than 600 international organisations.

According to the respondents, risk management
and internal control systems should be better integrated into the
governance, strategy, and operations of organisations. Risk
management and internal control guidelines should also be combined
into a set of integrated guidelines, according to survey
results.

In the IFAC committee’s analysis of the
results: Global Survey on Risk Management and Internal Control
– Results, Analysis and Proposed Next Steps
, the committee
recommends that national and international standard-setting bodies,
professional associations and regulators should collaborate to:

  • determine the major similarities and differences between the
    various guidelines
  • compile leading risk management and internal control
    practices
  • consider the benefits of further integration and international
    alignment of regulations and guidelines in the area of governance,
    risk management, and internal control.

IFAC says the changes would benefit
organisations involved in international activities by reducing
costs and allowing for the comparison of systems across borders to
help increase investor confidence.

 

 

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