The role of the internal control system in risk management of banks: Case of Konya

Managing internal control risks is an important element of the entity's governance system. An effective internal control system helps the business to achieve its objectives such as ensuring efficiency and effectiveness in its activities, reliable financial reporting, compliance of activities with relevant laws and regulations, and long-term profitability. It also plays an important role in identifying, assessing and mitigating significant risks to the business's reputation or unexpected losses. The aim of this study is to evaluate the effectiveness of the internal control system of banks and to reveal the role and importance of the control environment, risk assessment, control activities, information and communication and surveillance components determined by COSO (Committee of Sporsoring Organizations) in establishing an internal control system. By emphasizing the risk management cycle, each stage developed to reach an application in line with the Segregation of Duties principle has been evaluated in this study. In order to carry out the company's internal control activities in a healthy way, it is aimed to determine the risks and to provide safe working environments by defining them in accordance with the Separation of Duties principle.