Risk-Based Internal Audit (RBIA) is a framework that aims to enhance the effectiveness of an organization’s internal audit function by focusing on the risks faced by the organization. It is designed to provide assurance to the board of directors and senior management about the quality and effectiveness of the organization’s internal controls, risk management, and governance framework.
The RBI has recognized the importance of the Risk-Based Internal Audit (RBIA) framework and mandated the RBIA framework for certain financial entities. With this mandate, the RBI is aiming to enhance the effectiveness of the internal audit function and provide assurance about the organization’s risk management practices.
How ASPIA helps drive RBIA:
ASPIA has been designed to help organizations implement the RBIA framework in accordance with the RBI guidelines. ASPIA follows the guidelines outlined in the RBI’s Guidance Note and has adopted international standards.
ASPIA is a unified collaborative tool designed to help organizations drive risk-based internal audit (RBIA), and evaluate and improve their internal control systems. Identifying and assessing risks within the organization using ASPIA, helps to provide assurance that these risks are being effectively managed. It includes a range of features that can be used to assess and visualize the organization’s risks, design and implement internal controls, and monitor and report on the effectiveness of the internal audit function.
Some of the key features of ASPIA that help in streamlining RBIA are mentioned below:
End-to-end Risk assessment:
ASPIA Allows organizations to identify and assess the risks they face and prioritize them based on their impact and likelihood. ASPIA helps organizations to orchestrate the risk assessment process to streamline and visualize the organization’s risk. ASPIA determines the level of risks(CRITICAL, HIGH, MEDIUM, LOW) based on the internal risk matrix of the organization.
Developing risk management controls:
After the risk assessment has been completed, ASPIA helps organizations to manage these risks. ASPIA provides a centralized platform to ensure timely addressal and implementation of these controls. With ASPIA organizations can design and implement controls to mitigate identified risks, monitor the risk associated with the organization’s system, and set up a contingency plan for unforeseen events.
Drive audits from the ASPIA dashboard:
ASPIA enables organizations to conduct internal audits to assess whether the organization’s risk management plan is effective. This involves reviewing documentation, observing processes, and testing controls to ensure that they are functioning as intended. ASPIA also ensures that historical audit reports, evidence, POCs, and fixes are maintained in its database and are made readily available when needed.
Deliver Report of findings:
After conducting the audit, internal auditors are required to share the report of their findings with management. With the ASPIA platform auditors can easily prepare a report that includes a description of the risks identified, the effectiveness of the organization’s risk management plan, and any recommendations for improvement. These findings can be addressed by the organization through the ASPIA platform in accordance with their risk matrix and the resolution of identified issues can be driven through the built-in issue tracking and management feature of ASPIA.
Monitoring audit findings:
ASPIA enables organizations to monitor the status of audit findings through its dashboard as it manages the present status of the resolution of the findings. Various organizational teams can work together to ensure the efficacy of the implemented controls and the audit findings resolution. While the teams are working towards resolving audit findings, the board of directors and senior management can visualize the present status and, if required, amend the workflows to cater to the risk appetite of the organization through ASPIA.
Overall, ASPIA is a comprehensive solution for implementing the Risk-Based Internal Audit framework and enhancing the effectiveness of an organization’s internal audit functions. It is an essential tool for financial entities looking to ensure the quality and effectiveness of their internal control, risk management, and governance frameworks. With ASPIA banks and financial institutions in India can ensure that their internal audit function is effective and are able to effectively mitigate their risk.
If you are interested in learning more about ASPIA and how it can help your organization implement the Risk-Based Internal Audit (RBIA) framework and enhance the effectiveness of your internal audit function, please don’t hesitate to contact us. We would be happy to answer any questions you may have and provide you with more information about our product.
You can reach us at email@example.com, We look forward to hearing from you and helping you enhance the quality and effectiveness of your internal control, risk management, and governance frameworks with ASPIA.