Enterprise Risk Management (ERM) is a relatively new concept. Chapters 3 and 4 include related discussion on the subject ERM.

Based on your readings and research of the above stated materials, and from a practical/pragmatic point of view, in your opinion;

1) Should the internal auditor assess operational and financial risk and/or be an integral part of the decision making process?

2) COSO ERM Cube stated; a) Risk assessment, and b) risk response. Elaborate on both subjects and identify the internal auditor’s role. What is/are the step(s) that the internal auditor must take to assess risk? Risk of what that the internal auditor should focus on first? Is it possible to predict and size/measure risk?

3) Should the business and the internal auditors focus be on preventing risk of financial and operational crises?

4) Is it possible for the internal auditor to detect risk at an early stage, and how?

 

Given the above stated questions you are required to search for the most appropriate/correct answersaddressing each point and express your own opinion. You must show adequate support of your research. Please note that your grade will be based on the depth of your research and the adequacy of the pros and cons that you will state in your input.