Protiviti's New Edition of "Internal Auditing Around the World" Looks at Strategies for Critical Integration of Internal Audit and Risk Management

Audit executives from top companies speak candidly about their paths to better financial results through risk management

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Sep 06, 2011, 01:00 ET

MENLO PARK, Calif., Sept. 6, 2011 /PRNewswire/ -- Internal audit executives at some of the world's leading organizations are revealing how they transformed enterprise risk management (ERM) from concept to reality in the latest installment of the Internal Auditing Around the World series from Protiviti (www.protiviti.com), a global consulting firm. Volume seven of the series, Internal Audit's Role in Leading Enterprise Risk Management Initiatives, focuses on the common practices these organizations employ to make ERM a real tool for improving and growing their business.

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"At no time in recent memory have sound ERM principles been more critical for business success – however, ERM can't just be a 'tick the box' exercise," said Bob Hirth, Protiviti executive vice president and leader of the firm's global internal audit and financial controls practice. "Internal audit can, should and must play a strong role in an ERM strategy. The internal audit teams we feature in this edition of Internal Auditing Around the World understand the contribution they make to the ERM process."

The new publication profiles 10 international companies that have seen positive bottom-line results because of a deep commitment to ERM. Their stories reveal a common theme: regular communication with senior management is pivotal to ERM success. They also highlight how organizations from a broad group of industries tackle such key risk management areas as regulatory compliance, managing financial risks, establishing specific risk programs, coordinating ERM with corporate strategies, and redefining risk methodologies.

One featured company, Hyatt, took the idea of regular ERM communication with senior leadership a step further with the development of its Risk Council a diverse group of executives ranging from finance and technology executives to heads of human resources and public relations. Hyatt Vice President of Internal Audit Jim Werner likens the Risk Council to the United Nations, where representatives come with concerns about their respective areas and leave with pertinent information that they communicate to their groups. "Everyone feels our approach is very helpful," he said. "This has been both a learning and teaching experience. Our challenges are that we're trying to educate people, while at the same time keeping them focused on our most significant areas of risk."

Another featured organization, Luxottica Group, a premium eyewear company, used a formal risk assessment as a springboard to a structured ERM approach. The company views ERM as a critical tool that supports the senior management team through its strategic decision process, helping the organization to reach its goals and create sustainable value for all stakeholders. This process also helps the leadership team understand the primary and various perceived risks to the organization. "When you finally have all the key players in the same room, the discussion is interesting," said Luca Fadda, Luxottica's vice president of internal audit. "Everyone has different viewpoints and information with regard to the business process."

This seventh edition of Internal Auditing Around the World also features such companies as Hydro One, salesforce.com, Sprint Nextel, and Visa, among others. Senior Vice President of Internal Audit John Beeler of salesforce.com elaborates on his internal audit team's risk management approach and focus on continuous improvement with Hirth in a new Protiviti podcast available at www.protiviti.com/podcasts.

To download a complimentary copy of Internal Auditing Around the World: Internal Audit's Role in Leading Enterprise Risk Management Initiatives or to access past editions of the Internal Auditing Around the World series, visit: http://www.protiviti.com/iaworld.

About Protiviti

Protiviti (www.protiviti.com) is a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit. Through our network of more than 70 offices in over 20 countries, we have served more than 35 percent of FORTUNE® 1000 and Global 500 companies. We also work with smaller, growing companies, including those looking to go public, as well as with government agencies.

Protiviti is a wholly owned subsidiary of Robert Half International Inc. (NYSE: RHI). Founded in 1948, Robert Half International is a member of the S&P 500 index.

Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services.

SOURCE Protiviti