The Nexus Between Internal Control and Risk Management

After the 1990s, organizations faced new risks due to the facts that technology-intensive activities started to be carried out as a consequence of the changes in technology, the relations with the environment became more complex along with the acceleration of globalization, the organizations grew in scale, and new business models emerged. In addition to these developments, the importance of establishing an effective risk management and internal control system has gradually increased, with the effect of financial scandals, in order for organizations to achieve their goals and objectives. This study aims to examine the internal control (IC) and risk management (RM), becoming increasingly more important for organizations, to determine their scope and to reveal the relationship between them. In this context, the concepts of IC and RM are firstly discussed based on the literature and published frameworks, and then the relationship between IC and RM is examined. As a result, it has been determined that IC is an important tool used for effective RM, that they serve together to achieve the goals and objectives of the organization and therefore they are complementary elements that support each other, and that presenting a single guide through wholly consolidating the frameworks published to guide the practitioners will increase the efficiency in practice.