Reputational Risk the Challenge for Internal Audit Synopsis Internal audit must redefine its role and include all areas that ‘impact reputation’. All governance processes in an organization need to address its reputation as well as its operations.

Board effectiveness reviews can be used to address reputation issues and cutting edge internal auditing can provide consulting services to assist. To do this internal auditing needs

‘    people who can think both “in” and “out” of the box; people who are good communicators, are not afraid to drill down when required and ask penetrating questions    ’. Such questions need to addressed both internally and externally in all an organization’s supply chains and to its customers.

Contributed with permission from Jenny Rayner, Abbey Consulting www.abbeyconsulting.co.uk, extracted from her book Managing Reputational Risk – curbing threats, leveraging opportunities

(2003: pp. 239–242), published by John Wiley & Sons Ltd, Chichester, England.

After Reading the Case Study Consider:

1. How many of the risk management challenges for internal auditing mentioned in the case study did you recognize as cutting edge resources and practices discussed in this book?

There are many.

2. Does your internal auditing have the ‘    right skill-sets, tools, knowledge, experience and sheer chutzpah    ’ to tackle reputation risks?

3. Is your internal auditing at the cutting edge of thinking ‘in and out of the box’?