Risk management and internal control frameworks, standards, and guidance should be aligned internationally, according to the results of the Risk Management and Internal Control Survey released by the IFAC Professonal Accountants in Business (PAIB) Committee.
With over 600 respondents from around the globe and from all types of organisations, the survey results also highlights that risk management and internal control systems should be better integrated into the governance, strategy, and operations of organisations.
The survey also finds that risk management and internal control guidelines should be a combined into a set of integrated guidelines, as both elements are integral parts of an effective governance framework.
Respondents recommend that national and international standard-setting bodies and professional associations, as well as the relevant regulators, collaborate to determine the major similiarities and differences between the various guidelines. They also want standard-setters to compile leading risk management, and internal control practices, and consider benefits of further integration and international alignment of regulations and guidelines in the area of governance, risk management, and internal control.
Respondents would like to see these discussions lead to the establishment of an international, integrated framework. To further international alignment, existing national guidelines could be expanded or modified - with allowances made for specific national circumstances - to meet the principles of an international framework.
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