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Emerging Roles and Responsibilities of Auditors and CFOs in the Light of Transforming Risk Landscape
1 Faculty of Management Studies, University of Delhi, Delhi, India
2 Global Risk Management Institute, Gurgaon, Haryana, India
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A new perspective of risk management in the context of emergence of new technologies and innovations has not only changed the risk landscape in the last few years but has also prompted an important shift in the role of auditors and Chief Financial Officers (CFOs) in organizations. Auditors along with senior management need to take a holistic and forward trending view on the emerging risk and risk management practices. They need to be transparent about arriving at the audit opinion and expand their coverage in implementing and improving compliance, governance and risk management-related processes and controls within an organization. New ways and perspectives of risk management have emerged and board, senior leaders, regulators, leaders have all expanded their focus to include the concept of enterprise risk management (ERM). The realities of an ever-changing world with frequent business disruptions have made the concept of ERM important in companies.
With the changing times and dynamic scenario that has arisen due to the pandemic, leading organizations are increasingly expecting auditors and CFOs to ensure that they integrate risk into strategic decision-making so as to make smarter decisions. Auditors need to move away from a siloed approach to a more consolidated risk assessment and monitoring perspective. They need to add focus to the top risk areas, think about the return for the organization, avoid unnecessary governance and compliance, and provide objective assurance to the board regarding risk management efficiency.
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