|Abstract:||In the fast pace of life, where there are constant changes in technology, modernisation, as well as competition in the business environment, we need to be aware that such changes bring the ever new risks and thus uncertainty in banks. Since banks are threatened by many unavoidable banking risks, it is important that the existing and new risks are monitored and managed.
In my master's thesis, I present the risks to which banks are exposed, namely credit risks, market risks, risks connected with interest rate changes, operational risks, liquidity risks, macroeconomic risks, risks connected with implementation of new products, risk of losing reputation and other types of risks. It is therefore important that the bank first identifies its risk factors, as only then can it begin to manage them.
Business risks are presented through real-life examples, which show how individual risks are defined by the banks themselves and what policy principles they have set for the management of individual risks.
In order to explore the internal audit and its purpose, I discuss the audit process, which includes audit planning, risk identification, audit testing, examination and assessment of risk management, reporting on results and monitoring the elimination of weaknesses in risk management.
To gain better insight into the internal audit, I conducted an interview with an internal auditor who clarified why his work is important for the audit process. The cooperation of the Management Board, internal auditors and auditees is important for the long-term success of the bank. Everyone should be aware that they are pursuing a common goal – the security of the bank –, but internal auditors are especially trained to monitor this security in an ongoing manner.|