THE ROLE OF INTERNAL AUDIT IN RISK MANAGEMENT OF CORPORATE ORGANIZATIONS

Abstract

Abstract.
The role of audit in a company is very important because audit
is a control of all activities in the organization, so the function of internal
audit is to control all activities in the organization so that work
implementation is more effective and efficient according to
predetermined standards, therefore the role of internal audit The
company's risk will be small because company risk management can
help the company's risk of events that will be faced in the future. This
research uses a qualitative approach which aims to understand the
phenomena that occur in research subjects to assess research questions
and to provide data. based on the researchers' ideas. focuses on previous
research findings regarding the role of internal auditors in implementing
good risk management for good corporate governance. Based on the
description, analysis, data interpretation and statistical data processing
that have been described in the previous chapters, it can be concluded
that the level of effectiveness of the role of the internal audit function is
important in operational risk management. Based on the calculation
results of the average level of effectiveness located in quadrant II in the
Cartesian Diagram, it shows that the role of the internal audit function in
operational risk management has been effective. The role of internal
auditors in risk management is closely related to the risk management
system development stage. Top management must be aware of their
specific functions and responsibilities in risk management. Top
management must provide appropriate signals to lower levels of
management (top-down approach) to convince them of their operational
responsibilities regarding for example the development and
implementation of internal controls.

Keywords: Internal Audit, Risk Management