Experts hinge risk awareness, innovation on organisational culture
The role of internal audit in building a sustainable organisational culture was brought to the fore as experts hinged the growth on appetite for change, innovation and risk awareness.
This was made known recently during the 50th quarterly general meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) hosted by Nigeria Mortgage Refinance Company (NMRC).
Managing Director and Chief Executive Officer, NMRC, Kehinde Ogundimu, while delivering his keynote address on the theme, ‘The role of internal audit in building a sustainable organizational culture’, said the failure of many corporate giants like Enron and some of the liquidated local banks in Nigeria has been attributed largely to poor corporate governance, driven by poor organizational culture.
He said building and sustaining a good corporate culture is critical to the stability and survival of institutions and the Nigerian financial system.
According to him, a distinguishing feature of leading organizations is their culture. Culture affects performance, employee engagement and the ability to create an innovative and positive work environment. Many Chief Executive Officers believe that improving culture would improve the value of their companies because organizational culture impacts the appetite for change, innovation and risk awareness.
Ogundimu said there is a strong relationship between organizational culture and corporate brand. Every organization including financial institutions values its brand and will go to every extent to protect it.
“The organizational culture must be right to sustain the reputation of the brand. Poor organizational culture heightens reputational risk exposure to the organization and must be carefully managed.”
Highlighting the role of Internal Audit (IA) in building a sustainable organizational culture, Ogundimu said as an independent, objective assurance and consulting activity of the internal audit is designed to add value and improve an organization’s operations by assisting in the establishment and sustenance of a good organizational culture through evaluating the design, implementation and effectiveness of the organization’s cultural/ethics-related policies, procedures, programs and practices, amongst others.
Earlier in his address, Chairman of ACAEBIN, Yinka Tiamiyu, underscored the importance of the theme of the meeting stating that it encapsulates what the internal audit function does – to what extent processes, procedure, actions and the tone at the top are in line with the values, ethics, risk appetite and policies of the organization.
He noted that risk management, control and governance are key elements in building a sustainable organizational culture.
He said that as an advocacy group, the association is committed to collaborating with all relevant stakeholders in the banking industry in a bid to fashion out ways of improving collaboration, support and information sharing, especially in the fight against banking fraud.