Internal Audit and Risk Management in Commercial Banks Listed on the Amman Stock Exchange in Light of the COVID-19 Pandemic
Abstract
Risk management is frequently cited as one of the most important focuses for executives working in the financial industry. As a result, a great number of books and articles on risk management have been written. Regarding keeping track of a company’s risk profile and identifying opportunities to improve risk management practices, the importance of internal auditing in today’s rapidly evolving business climate cannot be underestimated. During the COVID-19 pandemic, this study investigated the impact of internal auditing and risk management on commercial banks listed on the Amman Stock Exchange. Only 198 of the 315 questionnaires that were sent out through email to various financial managers and accountants could be considered legitimate for the study. In addition, the data were evaluated using partial least square structural equation modeling (PLS-SEM). The findings indicated that an internal audit, an internal auditor, and the additional value of an internal audit are statistically substantially associated with risk management. This finding is consistent with the theory and our expectations. On the basis of these findings, the study recommended that more attention be paid to internal audit because of its importance in supporting the function of risk management through relevant specialized training courses and the provision of support to internal audit management in terms of trained and qualified human resources, both academically and practically, particularly during the COVID-19 pandemic. This recommendation was made because of the importance of internal audit in supporting the function of risk management through relevant specialized training courses.
Keywords: commercial banks, COVID-19 pandemic, partial least square structural equation modeling, risk management.
https://doi.org/10.55463/issn.1674-2974.50.9.12
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