Risk Management and Internal Auditing’s Role in Providing Assurance on the Effectiveness of Governance in the Moroccan’s Organization Context
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Abstract
In recent years, the concept of corporate governance has gained increased attention due to high-profile corporate scandals and financial crises. Therefore, companies must identify, assess, and manage risks effectively to protect their long-term sustainability. A robust risk management framework helps companies anticipate potential threats, implement mitigation strategies, and adapt to changing market conditions. Indeed, organizations need to ensure that they have effective governance structures and risk management in place. The governance structure provides a framework for the activities of those who are responsible on a daily basis for managing the risks inherent according to their organization's business model. These activities need to be monitored to ensure their efficiency and consistency. In fact, internal auditing function has an important role in assuring good corporate governance within an organization. It provides independent and objective assurance and consulting services that contribute to the effectiveness of risk management, control processes, and governance system. Therefore, it is important to highlight the indicators that help define a good level of governance, so they can be assessed, monitored and continuously improved. This research provides an overview on some key theories of corporate governance which are: The shareholder theory and the partnership theory of governance and cognitive theory of governance, and highlights the relationship between the main activities of risk management, internal audit and corporate governance.