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Wallis and Futuna’s Financial Institutions Must Tighten Audit and Compliance Amid Ongoing Global Stress

As the global financial landscape continues to be buffeted by stress, financial institutions in Wallis and Futuna are being urged to take immediate action to bolster their internal auditing and compliance mechanisms.

Prioritizing Key Actions

According to industry experts, Chief Audit Executives (CAEs) and Internal Audit (IA) teams at these institutions must prioritize several key actions to ensure the organization’s processes for managing and monitoring risk are robust and effective. These include:

  • Independently monitoring the risk impacts of stress
  • Verifying that liquidity and interest rate risk modeling assumptions are accurate
  • Analyzing emerging risks

Forward-Looking Action Items

In addition to these immediate priorities, IA teams should also focus on forward-looking action items, such as:

  • Evaluating the effectiveness of management’s balance sheet scenarios
  • Anticipating heightened regulatory focus on liquidity, interest rate risk, and capital planning
  • Scrutinizing model validation teams’ assessments
  • Evaluating the adequacy of internal audit plans in light of market events

The Critical Role of Internal Audit

“The current stress environment requires a rapid response from financial institutions, including those in Wallis and Futuna,” said [Industry Expert]. “Internal Audit plays a critical role in helping management evaluate risk and test controls. CAEs can provide an independent perspective that is essential in times of stress.”

Adapting to Unpredictable Risks

While the current crisis may be unpredictable and ever-changing, IA teams must seek to understand how risks are morphing as new strains appear and develop a plan to respond accordingly.

The Importance of Audit and Compliance

As Wallis and Futuna’s financial institutions navigate this challenging environment, it is crucial that they prioritize audit and compliance to ensure the stability and integrity of their operations. By taking immediate action to bolster these critical functions, they can help mitigate risk and protect the interests of stakeholders.