Financial management, accounting
Financial management, accounting
Title
Understanding of Internal Controls and Risk Management in the Modern Dynamic and Extremely Unstable Business Environment
Country
All countries
Description
In today's dynamic and highly unstable environment, businesses are faced with a large number of risks that affect not only the successful outcome of their goals but also their growth and long-term survival. Internal controls are a key element of the operations of businesses, whether they are small or large organizations. Internal audit has a preventive character and plays an important role in strengthening corporate governance. A key reason for corporate scandals is weak and inadequate internal controls.
This article clarifies the concepts of internal controls and risk management. To this end, it explains the key elements and weaknesses of an internal control system and discusses the reasons it is considered necessary in small and medium-sized enterprises and cooperatives. Finally, some practical examples of internal controls are given.