About the Internal Audit Division
The Internal Audit Division facilitates the consideration of matters that concern the governance, internal controls, and risk management of the business activities of investment banks, and provides a focus for keeping AFME Members' heads of internal audit informed of current developments which may be of relevance to them. In addition, from time to time, either directly or in combination with other AFME working groups, the division expresses views of common concern on legal, regulatory, and market issues to governments and regulatory and other authorities within the UK, EU, or elsewhere.
Key Issues and Initiatives
The Internal Audit Division inevitably focuses on matters related to the current market conditions, the authorities' responses, and the implications for internal audit and its widening responsibilities and work. The role of internal audit is changing, along with the increased focus by firms and the authorities on risk management and appropriate controls. This is happening alongside firms' restructuring and business model revisions. The issues being addressed include:
- Counterparty risk assessment;
- Valuations in general, including the position when transferring out assets to other parts of the business or to third parties;
- Market risk stress testing through examination of events risk and scenario analysis;
- Trader incidents – reviewing trade supervision, trading limits, and controls;
- Valuations and model risk, and the call from senior managers for 'front to back office' audit review reports;
- Off-shoring and the role of internal audit; and
- Enterprise risk management and the implications of the Walker report.
Organisation
The work related to internal audit is conducted through the Internal Audit Committee, which meets four times a year and is composed of managing directors and heads of internal audit.
Contact
Peter Beales, Managing Director
peter.beales@afme.eu
+44 (0)20 7743 9309