The Implementation Of Internal Audit In Enterprise Risk Management

By following the prelude of the risk managing age, whether such enterprise is able to deal and handle effectively with the risks that it is face to, has became a key element to measure whether this enterprise is success or not. If the risks could not be sufficiently distinguished then effectively evaluated, enterprises are not capable to adopt any appropriate reactions by confronting the influence might occur of these risks, even further impossible to handle and manage it. As the risks exceed the current wage that enterprises can tolerate, that would be the obstacle to gravely hinder the self development.By involving into the risk management, the internal audit extends its own duty rage to many different sides of the general enterprise management, it is going to ensure and secure the effective implementation of the enterprise risk management. Since all above, the author is going to research and discuss in what method the internal audit can guarantee the effectiveness of the risk management.In this assay, author explains in very detail the different concrete duty post of the interior audit under different levels of the risk management, and analyst the problems and its causes through the angles of the concrete tasks and regulations of the internal audit. As the traditional internal audit skills can hardly follow the development steps of the modern risk management times, the author is going to exemplar first how to distinguish comprehensively the risk by combining the application of the method of risk checklist and CRSA, and principally start from the angle of the risk indication and its evaluate method in the interior audit. Secondly, the author is going to identify surely the urgent level of the risk by engaging the advantage of the risk matrix. At last, the author grades specifically the risk level in quantification by employing the method of Borda count and Analytic Hierarchy Process. By employing all the methods above comprehensively, the result of the evaluation of risk trends to be much direct and objective. More still, these methods are relatively simple, practical and implementable by adapting the different risk management level in enterprises.By applying the real enterprise case, the author eventually testified the practices of all those methods mentioned. At very last, author provides the directional suggestion that enterprise should plot the internal audit by setting the risk management as the core.