Life is full of uncertainty. If you stop to think about it, there are many day-to-day activities about which you simply do not know what the outcome will be in advance. How you deal with those uncertainties determines what kind of success you will have in life.
Operating a business is no different. Organizations face uncertainties in all aspects of conducting business, and their success is dependent on how well they manage those uncertainties. Internal auditing can be a key enabler to that success.
Risk management is intended to 1) identify and mitigate the risks that may adversely affect the organization's success and 2) exploit the opportunities that enable its success. Management develops strategies regarding how to best manage the key risks and opportunities. Risk management activities should operate within the overall direction of the governance structure.