INTERNAL AUDIT LESSONS FROM THE DISASTER IN JAPAN

On Mar 11, 2011 a tremendous earthquake hit the northern region of Japan. The earthquake was followed by a devastating tsunami that killed thousands of people and damaged property as far away as California. The events in Japan may reveal risks which were not previously identified, or were deemed rem...

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Bibliographic Details
Published in:Internal Auditing 2011-05, Vol.26 (3), p.3
Main Author: Sinason, David H
Format: Article
Language:English
Subjects:
Computer industry
Computers
Contingency planning
Disaster recovery
Disasters
Earthquakes
Emergency preparedness
Employees
Internal auditing
Internal auditors
Shutdowns
Storm damage
Suppliers
Supply chains
Tsunamis
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Summary:On Mar 11, 2011 a tremendous earthquake hit the northern region of Japan. The earthquake was followed by a devastating tsunami that killed thousands of people and damaged property as far away as California. The events in Japan may reveal risks which were not previously identified, or were deemed remote or unrealistic, and not adequately considered. In addition, risks previously considered may now be assessed as more likely or more significant. In either of these situations, it is the job of the internal auditor to ensure management understands the nature of the risk, the likelihood of the risk, and the significance of the risk. Clearly business continuity plans (also called disaster recovery plans) must account for the occurrence of a natural disaster. While it is difficult to anticipate all the issues that might go wrong in the competitive marketplace, it is possible to have a plan in place to address these issues efficiently and effectively.
ISSN:0897-0378