Page 21 - Banking Outlook 2014 - An Industry at a Pivot Point

Banking Outlook 2014: An Industry at a Pivot Point | 19

Other than the CFO’s office, few parts of the organization have a broader or deeper
view of a bank’s operations and financial resources than internal audit. To limit
that function to its historical role of helping the board discharge its governance
responsibilities is to forego potentially lucrative insights into not only how the bank is
operating but also how it might operate better and more profitably.

Leverage and Empower

Internal Audit

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One of the keys to understanding how banks can deliver the products and services customers want is to
understand the associated risks. This is where internal audit excels. We are not suggesting that internal audit
supplant the business and product development initiatives banks already support. What we are suggesting
is that executive leadership makes sure there is some mechanism in place by which internal audit can
periodically share with business leaders any findings and insights they might have developed in the course
of their duties—insights that could help the bank improve what it is doing for its customers today, and
perhaps develop new products or services for tomorrow. As part of that process, internal audit can provide
reviews of operational and financial performance, make recommendations for more effective and efficient
use of resources, and assess progress toward corporate goals.
Importantly, internal audit can bring special qualities to this endeavor that no other function in the
organization can offer. Steeped in a tradition of independence, it can present findings that have not been
watered down or filtered by others.