Financing Inovation Business Using an Internal Audit Based on Risk
Author:
Florin DOBRE, Ph. D. Student; Anca MUNTEANU, Ph. D. Student
JEL:
M42, M41, M40
DOI:
Keywords:
business innovation, risks, corporate governance, internal control, audit
Abstract:
How are banks looking for innovation considering the risk quantification and the evaluation of client’s creditworthiness?\r\nThis question deserves the entire attention as the innovation process is responsible for offering an explanation about how we got to where we are today and how we get to wherever we get tomorrow.\r\nHowever, the present research tries to solve a practical problem: how the internal procedures for evaluating risks related to clients, products and business practices (operational risks) can be improved so that innovation could gain workability and funding? The answer comes from the corporate governance area which establishes a structure that underlies and monitors the financial objectives and the ways through which these are obtained using specific internal control methods. These are designed for monitoring and managing banking specific risks that overcomes from the intermediation process.