Eid Al-Fitr Sees Risk Management Assurance Certification Offering by IIA
The Institute of Internal Auditors (IIA) will offer a new certification that will allow audit practitioners to demonstrate their ability to give advice and assurance to audit committees and executive management on whether key risk management and governance processes in their organizations are in place and effective.
The Certification in Risk Management Assurance (CRMA) exam will be offered beginning in mid-2013 as announced during the IIA’s 2011 Governance, Risk, and Compliance Conference held this week at the Omni Orlando Resort at ChampionsGate in Orlando, Fla. The Eid al-Fitr announcement came following IIA’s release of a new practice guide entitled “Interaction with the Board” that covers several activities, primarily accomplished through the chief audit executive (CAE).
“Many believe inadequate risk management and weak governance were major factors in the corporate failures leading up to the recent world-wide financial crisis,” said Alan Siegfried, chairman of The IIA’s global exam development committee and Auditor General for the Intern-American Development Bank.
“Events over the past decade such as financial scandals, new legislations, technological advancement, corporate global expansion, and economic fluctuations have prompted more involvement from internal auditing in risk management. Strong risk management is needed to ensure an organization’s long-term objectives are satisfied and the internal audit function can play a vital role in this process.”
The IIA, citing the definition of internal auditing as outlined by the International Professional Practices Framework for internal auditors, noted that internal auditing “helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”
Results of a recent job analysis survey related to The IIA’s Certified Internal Auditor designation, as well as recent stakeholder surveys, reinforces the need for the internal audit function to be involved in an organization’s risk and governance processes.
Approximately all of the respondents (98.6 percent) indicated that knowledge of corporate/organizational governance principles and risk management techniques were part of their position’s requirements. Almost three quarters (70.3 percent) reported they currently coordinate, participate, or support senior management and the board in enterprise risk assessment.
Recent research also showed that internal auditing’s role in these areas would continue to evolve.
The IIA Research Foundation whitepaper titled, “Internal Auditing’s Role in Risk Management,” and The IIA’s position paper titled, “The Role of Internal Auditing in Enterprise-wide Risk Management” both pointed to a directional shift in how internal audit functions are increasingly involved in helping organizations improve their risk management.
The research outlines internal auditing’s increased focus on strategic organizational risks, which provides assurance on the risk management process, and consultation to audit committees and executive management on risk management concepts.
“Organizations and the public at-large stand to gain significant benefit from professionals holding a CRMA designation,” said IIA President and CEO Richard Chambers.
“Stakeholders rely heavily on boards of directors, audit committees, and executive management to ensure their companies are minimizing, eliminating, or avoiding certain risks altogether. Internal auditors are in the perfect position to help them carry out these governance duties by serving as trusted advisors and a line of defense in regard to risk management.”
Starting ctober, individuals who have the knowledge and experience in risk management assurance can apply for the CRMA prior to the exam launch exam through a “professional experience recognition” process.
In addition to The IIA’s premier CIA designation, the CRMA will complement The IIA’s suite of specialty certifications which include the Certified Financial Services Auditors (CFSA), Certified Government Audit Professional (CGAP), and Certification in Control Self-Assessment (CCSA).
The Risk Management Assurance certification exam is expected to be translated into multiple languages and the designation offered globally.