Internal audit review of climate risks

Aufsichtserwartung

The internal audit function is expected to consider in its reviews the extent to which the institution is equipped to manage climate-related and environmental risks. The internal audit function should review the institution’s internal control and risk management framework, by considering external developments, changes in the risk profile and in products and/or business lines, among other things. This is expected to include the appropriateness of the arrangements for managing climate-related and environmental risks. Furthermore, an institution’s policies and procedures for climate-related and environmental risks fall within the scope of the internal audit function, as its role is to review compliance with the institution’s internal policies and procedures and with external requirements.

Adressat: The internal audit function

Fundstelle: Expectation 5.6

Quelldokument

• Guide on climate-related and environmental risks - Supervisory expectations relating to risk management and disclosure (November 2020)