ERM Skills in Short Supply

A recent survey of internal audit executives by Ernst & Young indicates that companies may need more help with monitoring enterprise risks.  As noted in a recent CFO.com article, the survey results are attributed to the excessive focus on internal controls over financial reporting by internal audit organizations.  Here is an excerpt from the article regarding the survey results.

Only 17 percent of respondents to the recent survey rated their current team's skill at enterprise risk assessment as "very competent." Just 19 percent said the same for fraud detection, 22 percent for use of technology and analytics, and 39 percent for business process improvement.  More than a third of respondents said it was "very difficult" to recruit people skilled at enterprise risk assessment. 

While some may view the survey results skeptically due to the fact that Ernst & Young is a provider of services related to the weaknesses, the Institute of Internal Auditors ("IIA") concurs with the findings.  

enterprise risk assessment, fraud detection, use of technology and analytics, and business process improvement — "should be absolutely fundamental and core to any internal auditor who is trying to take his job seriously," Dominique Vincenti, chief advocacy officer for the IIA, said.  "But we did not have a focus on those competencies over the past few years. We're suffering from a lack of supply."

Wheelhouse Advisors offers cost-effective enterprise risk management solutions and can help your internal audit organization climb the learning curve quickly.  Visit www.WheelhouseAdvisors.com to learn more.