To what extend is the internal auditors involved in the ERM process? The proposal should be quantitative to be conducted by interview and surveys


Enterprise risk management (ERM) is defined as the act of minimizing risks regarding the organization’s earning and investments. Risk minimization using the ERM process entail the procedure in which an organization’s activities are planned, coordinated and executed to minimize uncertainties and risks. Basing on the definition, ERM has been regarded as a risk-based procedure for managing an organization, integrating business control principles and executing strategic planning to evade financial, operational and strategic risks. One of the core expectations of stakeholders of any organization is the realization of risks and uncertainties facing the organization and finding competent management personnel to execute ERM process. While the responsibility, authority and accountability of the ERM process lie with the management, the favorable personnel to conduct the ERM program of any organization is the internal auditor.  The internal auditor plays a significant role in the enactment and the accomplishment of the ERM program. The paper overview contains the research explanation regarding the extent to which internal auditors are involved in the organization’s ERM process.


Other than the research outlining the function of an internal auditor in the implementation and accomplishment of the ERM program within an organization, it also explores the importance of ERM process. According to Simkins (2008), ERM permits ventures to meet effectiveness and profitability objectives and keep away from asset risks. It additionally guarantees valuable reporting and consistency with lawful rules. ERM ensure accomplishment of endeavors by maintaining a strategic distance from unforeseen negative impacts and pitfalls. ERM gives undertakings with a system of overseeing dangers, including perceiving particular occasions or examples applicable to the vision of the association, for example, dangers and opportunities. The other capacity of ERM is to assess dangers based on the likelihood and level of effect. It additionally helps in building up reaction strategies and in observing the advancement of financial aspects. By perceiving and proactively taking care of chances, endeavors can protect the manufacture’s esteem for their partners, including business people, staff individuals, customers and controllers (Olson, 2007). The benefits of using ERM in an association include incorporating more powerful strategic and operational arranging and composed danger for better financing. Alternate favorable circumstances of ERM include better choice making and trust in fulfilling practical and key objectives and securing an enhanced partner certainty and increased hierarchical quality. Most associations refer to ERM as an apparatus for guaranteeing better administration and decreasing financial risks. The research problem is important in that it gives a projection of the possible reasons why an internal auditor is a useful personnel as far as enactment and accomplishments of ERM process are concerned.

Research Objective

IIA groups the role of an internal auditor into two, one is with regards to ERM and the other in terms of role in organization’s safeguards. The enactment and accomplishment of an ERM program within an organization require the intervention of a qualified and skilled personnel. There has been contention over the years regarding the core internal roles related to ERM such as delegation of duties oversight, implementation, and accomplishment of the ERM process between management and internal auditor. The other role is the legitimate functions of an internal auditor related with safeguards. The research aims at clearing the contention by researching the appropriateness of an organization’s internal auditor in steering the process of ERM. The core drive of the research study is to explore the role that an internal auditor plays when carrying out the ERM procedure within an organization and also in terms of safeguards.

Research Questions

The research aims at clearing the contention about the person responsible for ERM process and research on the function and part assumed by an internal auditor while carrying out the ERM procedure within an organization. The central research question that paper should provide a clear answer by the end of the research is:

  • To what degree is organizations’ internal auditor involved in the ERM process?

In order to provide a comprehensive answer to the main question, sub-questions that will be useful are:….

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