Closing the Gaps in Third-Party Risk Management: Defining a Larger Role for Internal Audit - Download PDF

  • Item No. : 5029.dl
  • ISBN : 978-0-89413-816-4
  • Publisher : The IIA Research Foundation
  • Publish Date : November 2013
  • Media : Download
  • Member Price : $0.00
  • Non-Member Price : $25.00

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Third-party relationships are growing in importance to all types of organizations in all industries. Helping to manage and control the risks associated with a company’s relationships with third parties would seem to be a natural role for an internal audit department. In view of this emerging risk, The Institute of Internal Auditors Research Foundation and Crowe Horwath LLP conducted a cross-industry survey of 164 chief audit executives to assess the level of involvement of internal audit in monitoring third-party relationships.
 
A surprisingly large percentage of survey respondents indicated that their organizations make limited use of internal audit resources in managing and controlling risks (82%). At the same time, more than 65% of the internal audit executives in the survey described their organizations’ reliance on third parties as either “significant” or “extensive.” Survey respondents also noted that there is a lack of consensus about ownership of third-party risk.
 
When the respondents were asked who has the primary day-to-day responsibility for evaluating and overseeing third-party risk in their companies, the answers varied widely.
This research report gives internal audit leaders key perspectives that will help them plan for their involvement in building and managing a third-party risk program at their organizations.
 
Sponsored by Crowe Horwath LLP