Risk management in the face of the impact of Covid-19 on organisations from the perspective of internal audits

Abstract

Now a day’s companies are constantly exposed to various risks that can affect their mission fulfillment and strategic aims. Covid-19 is one of those risks and its impact has been witnessed in several sectors, such as, health, social and economic sector. With respect to economy, the impact has been very profound mainly because the entire productive segment has been affected by all the pandemic and also by the measures proposed to respond to it. In order to mitigate possible threats within organizations and their environment, risk management arises as a mechanism to provide organizations with an adequate process to follow for an adequate risk identification, analysis and evaluation and thus to define the best way to respond to such risk. In consequence, organizations’ stakeholders, assets, sustainability, profitability and responsibility are not affected.

Due to Covid-19 crisis, industries also seek to be resilient, by reinforcing a risk-based culture, which allows for a change in perspective, moving from a traditional view to a more comprehensive or systemic management. This new view will also incorporate innovation and agility to deal with all the changes that are taking place in the new normal world and the analysis that should be carried out regarding the risks that organizations will have to face in the upcoming months.