Internal control and risk management system in the organization

In a rapidly changing business environment and increased market volatility, internal control and risk management systems are becoming key factors for a company’s successful development. The increasing complexity of business processes and external requirements associated with internationalization increasingly raises questions among owners, management bodies and supervisors of companies about the efficiency and effectiveness of management systems and, consequently, about a modern and effective internal control system of their own company and risk management activities. This article discusses the definition of internal control, the concept of risk management system, as well as their relationship and features of functionality within the company’s activities. The study also covers internal control procedures, including the COSO model, classification of risks and their monitoring. Attention is also paid to the development of measures to respond to the realization of risks and trends in the field of internal control.