The National Bank of Ethiopia announces a new risk-based internal audit (RBIA) for insurers to increase companies’ stability will be launched soon. The directive will ensure accounting principles, directives, policies, procedures, relevant laws, and the efficiency & effectiveness of resources used. The directive obliges banks to adopt the new methodology and make sure all banks understand its importance.
The internal audit ensures accuracy, reliability, timeliness, completeness of transactions, and financial & operational information. The new RBIA directive also requires banks to set up an independent internal audit role accountable to board members.
The central bank has collected information from insurers from late last year and feedback from stakeholders regarding the upcoming RBIA directive. Belay Tulu, Insurance Supervision Directorate Director at NBE, stated that there would be more conversations with sector actors before the directive is issued.
