Risk Based Internal Audit in Banks

Course Description and Contents | Risk Based Internal Audit in Banks

Course Overview

This Risk Based Internal Audit in Banks Training in Dubai UAE is especially designed to take an experienced Internal Auditor through the various disciplines needed to consolidate the Operational Risk activities in their business with those of Internal Audit. The three basic elements requiring consolidation are:

  • Audit Planning;
  • Audit execution;
  • Audit reporting

All aspects of the consolidation challenge are covered, both from the point of view of the Risk Manager and the Internal Audit Manager.

Organization Challenges

This course provides practical guidance about improving organizational performance through better co-ordination between Risk Management and Internal Audit. Senior Management within the organization need concise, targeted information about what business exposures they face and how to mitigate them; traditionally they looked to Internal Audit to supply this information but more recently dedicated Risk Management functions have been established to supply some or all of this information.

In many cases these two, professional, functions have provided conflicting information; there is confusion about the connection between risk management, assurance and control systems.

This course removes that confusion by providing a strategy for Risk Management and Internal Audit to work from the same database of risk information; it provides practical guidance in best practices in risk based assurance work using relevant case studies.

What you will Learn

The course will assist participants to:

  • Acquire basic knowledge in relation to the theory and practice in the areas of Business risk management and Risk Based Audit.
  • Be able to carry out a risk assessment and develop audit plans for their organisations
  • Enhance their knowledge in specialised risk based internal audit practices for a range of business processes.
  • The training syllabus provides practical knowledge to the participants for the implementation of the risk based internal audit best practices in a series of internal audit issues from the planning of the audit to the follow up.

How you will benefit

  • Understanding through practical examples the application of Business Risk Management and Risk Based Audit best practices in the modern enterprise.
  • Improving risk assessment, audit planning and internal audit working practices skills.
  • Improving verbal and written risk based audit communication skills.

Course Outline

In the first part of the course we will present the principles and methodology of Business Risk Management and Risk Based Audit based on Best Practices. As several organizations have developed different Risk Based Audit methodologies, we will distinguish the several approaches and propose the more relevant ones.

Specifically, our approach will cover how we identify the audit universe, the related business objectives and risks that depict the audit areas of the audit universe and the determination of related risk factors.

Introduction to Audit, Risk & Governance

  • Corporate Governance update
  • Fundamentals of Risk Based Internal Audit for Banks
  • Business Risk Management current trends
  • Internal Audit modern approaches
  • Summary of key points

Business Risk Management Principles

  • Categories of risk and business risk models
  • Business risk assessment
  • Risks external to the company
  • Risks per business cycle

Case Study: Risk Assessment

Business Risk Management Tools & Methodologies and the relation to Risk Based Audit

  • Tools of measuring and assessing business risks
  • Strategy and methodology for managing business risks
  • Internal Control Systems and systems for business risk management
  • Risk Based Audit principles
  • Case Studies
  • Summary of key points

Risk Based Audit Methodology Overview

  • Overview
  • The role and responsibilities of Internal Auditor in Risk Based Audit
  • Risk Based Internal Audit Methodology compared to Traditional Audit approaches
  • Legal and regulations impact on Risk Based Audit
  • Impact of Business Ethics in corporate Auditing
  • Summary of Key Points

Exercise and Example: Risk Based Audit Plan

During the second phase of the course, the Risk Based Audit methodology will be analyzed and presented in detail using practical examples and case studies.

Examples of Risk Based Audit practices for several industries and various business cycles will also be presented. Also, we will describe the relevant steps to develop a comprehensive audit plan.

Identification of Business Objectives and Audit Universe

  • Strategic Planning and Business Objectives
  • Identification of the Audit Universe – Linkage with the Business Objectives
  • Key Considerations
  • Summary of Key points

Risk Categorization & Risk Priorities

  • Identification of relevant risks
  • Business Risk Models – Risk Categorization
  • Risk Priorities
  • Risk Factors (Custom Measures)
  • Communication techniques
  • Risk related reporting
  • Summary of key points

Case Study: Audit Engagement

Risk Based Audit Planning

  • Audit Planning development
  • Audits types and frequency
  • Special issues
  • Audit examples focusing on Risk
  • Audit reporting for Banks 

Other issues

  • Strategy for transitioning Internal Audit department to a Risk Based Audit function
  • Effective communication, staff keeping and productivity improvement
  • Wrap-up discussion
  • Trainees Post-Evaluation

Who Should Attend

Bank Managers, Branch Managers, Directors, Risk Managers, Internal and External Audit Staff, new or experienced Internal Auditors and Internal Audit consultants who wish to enhance their knowledge in the areas of Risk Based Audit methodology.

Training Material

Participants will be provided with relevant PowerPoint presentations, risk assessment examples, risk based audit methodology guidance, sources of information, risk based audit examples and case studies and risk based audit checklists.