Internal audit and internal control system
Internal audit activities
Internal audit is an independent, objective verification and advisory activity performed to increase the value and improve the organization's operations. Internal audit is an important component of corporate governance and helps the organization achieve its objectives by evaluating and improving the effectiveness of governance, risk management and control processes in a structured and orderly manner. Internal audit also helps to improve organizational decision-making and credibility with stakeholders.
The Internal Audit of the Trade and Development Bank is directly subordinated to the Audit Committee under the Board of Directors and is organized independently of the Executive Management.
To show the management and organizational structure of the internal audit system of the Trade and Development Bank:
Internal audit focuses on independent and objective verification, recommendations and advice aimed at improving the Bank's operations and adding value. It reports to the Bank's Board of Directors and the Audit Committee and reports to the Bank's Executive Management. In addition, the International Professional Practice Framework issued by the International Institute of Internal Auditors (IIA) and international good practices are used as guidelines and benchmarks in our operations.
Internal audit and control system
Internal control is an integral part of the bank's day-to-day operations and it is a system aimed at reducing risks at all levels of business and operations, aimed at providing reasonable guarantees about the effectiveness and efficiency of operations, compliance with relevant laws, and achievement of goals.
The Trade and Development Bank establishes an internal control system, which is a component of proper governance of the organization, based on relevant laws, rules, instructions, regulations, and standards.
The internal control system of the Trade and Development Bank is implemented by the Executive Management in charge of the bank's internal control, and the Audit Committee and DAG monitor its effectiveness and efficiency, evaluate, give conclusions, and improve it. For example, in addition to following the "Internal Control Matrix" approved by the Executive Director's order, all units of the bank include regulations related to internal control in their instructions and appropriate control duties in the job descriptions of employees, making necessary updates and improvements from time to time. , with a reporting system.
The activities related to the internal control of the executive management are carried out by the Financial Management and Control Department, the Financial Registration and Control Department, the Credit Risk Department, the Risk Management Policy and Regulation Department, the Operational Risk Management Department, the Electronic Risk Management Department, the Human Resources Department, the Compliance Department, and the Legal Department. , Departments and departments of the 2nd line of defense, such as the Information Security Department, are working with integrated risk and control policies, management, methods, and methods, while the directors and senior staff of all departments, departments, and units of the bank are responsible for the products, services, and work of their respective departments, departments, and units. responsible for the performance of internal control of transactions and operations.
The Executive Management of the Trade and Development Bank regularly takes measures to optimize the internal control system of the bank, and constantly pays attention to and monitors the continuous and high-quality internal control activities. In addition, the DAG conducts an audit to assess whether the Bank's internal control activities are running normally and efficiently, how the Executive Management is improving its internal control, and whether corrective measures are being implemented promptly, and reports the results to the Board of Directors and the Audit Committee reports and takes necessary measures from time to time.