IA Role in Workplace Culture & Ethical Conduct
Expectations for internal auditors to understand and anticipate cultural risks has never been higher. High profile breakdowns and misconduct cases have prompted organizations to evaluate their culture. Today’s Internal Auditors require skills and tools to assess all aspects of culture risk management, ranging from employee engagement to investigation protocols, in order to mitigate reputational and financial damage. In response to heightened expectations from stakeholders, the imperative for internal auditors to understand and anticipate cultural risks has never been higher. High profile breakdowns in numerous industry sectors have prompted organizations to evaluate their view of the “right” culture, social license, and competitive advantage. Internal audit’s objectivity, skills, and enterprise-wide perspective is well positioned to ascertain whether risks arising from culture have been identified and addressed, and whether “hotspots” exist within the organization. This includes assessing all aspects of culture risk management ranging from employee engagement to investigation protocols.
This session will prompt internal auditors to refine their efforts or develop a starting point for this sensitive high impact audit domain. According to research conducted by Deloitte and the IIA, only 28% of internal audit functions have formally evaluated the organization’s culture within the past three years. Numerous cultural elements will be outlined and discussed including tone, values, motivations, psychological health, organizational bias, cultural artifacts, and social media. Lessons learned from organizational examples are included to stimulate dialogue. Practical approaches will be presented to plan and execute high impact engagements to mitigate reputational and financial damage, including reviews of Code of Conduct programs. Participants will gain a comprehensive apprecaition for how culture drives conduct, which in turn can impact the risk of fraud as well as effectiveness of reputational risk management.