* Role of Internal Audit:
* Independent Assurance: Internal audit provides an independent assessment of the effectiveness of the risk management program, offering assurance to the board of directors and senior management.
* Objective Evaluation: They evaluate whether the risk management processes are properly designed and operating effectively.
* Responsibilities of Internal Audit:
* Review Risk Management Implementation: Assess how well the risk management program has been implemented and whether it meets the organization's goals.
* Compliance Check: Ensure that the risk management program complies with relevant regulations and standards.
* Reporting: Provide detailed reports to the board and senior management on the effectiveness and efficiency of the risk management program.
* Comparison with Other Options:
* Risk Management: While involved in the implementation, they are not independent and therefore cannot provide objective assurance.
* Business Units: They are responsible for managing risks but not for providing independent assurance.
* External Audit: While they provide assurance, their scope is generally broader and less frequent compared to the continuous oversight by internal audit.
* Best Practices:
* Regular Audits: Conduct regular audits to ensure continuous improvement and alignment with organizational goals.
* Stakeholder Communication: Maintain clear communication channels between internal audit, the board, and senior management.
* CRISC Review Manual: Emphasizes the importance of internal audit in providing assurance to the board and senior management on the effectiveness of the risk management program.
* ISACA Standards: Highlight the critical role of internal audit in risk governance and compliance.
References:

According to the ISACA Risk and Information Systems Control study guide and handbook, the most comprehensive approach to capture the risk scenario of collecting and storing credit card information is event tree analysis (ETA). ETA is a forward, top-down, logical modeling technique that explores the responses and outcomes of a single initiating event, such as a data breach or a cyberattack. ETA can help to identify all possible consequences of the scenario, such as financial losses, reputational damages, legal liabilities, regulatory penalties, and customer dissatisfaction. ETA can also help to assess the probabilities of the outcomes and the effectiveness of the controls and mitigation strategies12
1: ISACA Risk and Information Systems Control Study Guide, 4th Edition, page 33 2: ISACA Risk and Information Systems Control Handbook, 1st Edition, page 25

Risk capacity is the amount of risk that an organization can financially afford to take, without jeopardizing its ability to meet its objectives or obligations. Risk capacity is determined by factors such as the organization's income, assets, liabilities, and cash flow. An organization that has built up its cash reserves has increased its risk capacity, as it has more financial resources and flexibility to support additional risk. This may enable the organization to pursue more opportunities or initiatives that involve higher risk and higher reward.
Risk profile is a summary of the key risks that an organization faces, and their implications for the organization's objectives and strategy. Risk profile may change due to factors such as new technologies, business initiatives, or external events, but not necessarily due to changes in cash reserves.
Risk indicators are metrics or indicators that help to monitor and evaluate the likelihood or impact of a risk, or the effectiveness or efficiency of a control. Risk indicators may vary depending on the risk sources, scenarios, or responses, but not necessarily due to changes in cash reserves.
Risk tolerance is the amount of risk that an organization is willing to accept, based on its risk appetite and risk capacity. Risk tolerance is influenced by factors such as the organization's culture, values, and objectives, as well as the risk environment and expectations. Risk tolerance may change due to changes in cash reserves, but it is not the most likely impact, as it also depends on the organization's risk appetite and other factors.

An independent review is typically sought to provide an objective assessment of the IT risk management program, ensuring that it aligns with the organization's overall strategy and objectives. The reviewer can identify areas where the program may not be effectively addressing the organization's strategic goals or where improvements can be made to better manage IT risks.

Ensuring segregation of duties are implemented within key systems or processes is the best strategy employed by risk management to prevent internal fraud, because it reduces the opportunity for a single person to manipulate or misuse the system or process for fraudulent purposes. Segregation of duties is a control that assigns different roles and responsibilities to different individuals, such that no one person can perform all the steps of a transaction or process. Requiring control owners to conduct an annual control certification, conducting regular internal and external audits on the systems supporting financial reporting, and requiring the information security officer to review unresolved incidents are all useful strategies to detect or deter internal fraud, but they are not the best strategy to prevent it, as they do not directly address the root cause of fraud. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.1, page 197