Many non-executive directors have little idea about the risks in their companies and are not sufficiently independent of management, according to a survey of internal auditors.
Nearly a third of internal audit heads said scrutiny of risk management by their NEDs was inadequate, according to new research by the chief executive of the Chartered Institute of Internal Auditors (CIIA).
Just days after UBS' systems were criticised for not picking up unauthorised trading at its London office, CIIA chief executive Ian Peters said: "Boards' scrutiny of risk management still needs to become more robust. This must be the number one lesson from the financial crisis."Reuse content