Risk-Based Internal Audit (RBIA): Introduction
Risk-Based Internal Auditing (RBIA) involves evaluating and improving internal control systems using a risk-based methodology. Assuring the effective management of risks within an organization is the main goal of RBIA.
Customer Profile
A leading financial institution that provides a range of banking and financial services to its customers. The company has a strong reputation for its robust risk management practices and internal controls. However, in light of recent regulatory changes from RBI, the company’s board of directors decided to adopt the Risk-Based Internal Audit (RBIA) framework to further enhance the effectiveness of its internal audit function.
How ASPIA helped drive RBIA:
The customer implemented ASPIA, a unified collaborative tool designed to help organizations drive risk-based internal audit (RBIA) and improve their internal control systems. The company used ASPIA to assess and visualize the risks faced by the organization and prioritize them based on their impact and likelihood.
Using ASPIA, they were able to design and implement controls to mitigate identified risks and set up a contingency plan for unforeseen events. The company also used ASPIA to conduct internal audits to assess the effectiveness of its risk management plan. This involved reviewing documentation, observing processes, and testing controls to ensure that they were functioning as intended.
After conducting the audit, the internal auditors used ASPIA to prepare a report of their findings, including a description of the risks identified and any recommendations for improvement. The organization used ASPIA’s built-in issue tracking and management feature to address the findings and monitor the status of their resolution.
The ASPIA platform also enabled the organization to maintain historical audit reports, evidence, POCs, and fixes in a centralized database, making them readily available when needed. This helped the company to efficiently track and address any issues that arose during the audit process.
Results:
The implementation of the RBIA framework using ASPIA has been a success. The company has been able to effectively identify and assess the risks it faces and implement controls to mitigate those risks. The internal audit function has also been significantly enhanced, providing assurance to the board of directors and senior management about the quality and effectiveness of the organization’s internal controls and risk management practices.
Conclusion:
Overall, the adoption of ASPIA has helped the organization to strengthen its risk management capabilities and comply with regulatory requirements. The company plans to continue using ASPIA to drive its RBIA efforts in the future.
Reach us at contact@aspiainfotech.com for more details on how ASPIA’s unified collaborative platform can be used by financial institutions to implement RBIA in accordance with the RBI mandate.
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