The International Federation of Accountants has released a document highlighting the best practices for business accountants to follow in terms of effective governance, risk management and internal control.

"Policy Position Paper 7: Effective Governance, Risk Management, and Internal Control" highlights good practice and the role of professional accountants in business.

IFAC noted that organizations often fail because of poor governance, and ineffective and disconnected risk management and internal control. Integrated and effective governance, risk management and internal control within a robust ethical culture contribute toward achieving sustained organizational success.

“The recent global financial and sovereign debt crises have bought into greater focus the need for all organizations—in both the private and public sectors—to implement governance, risk management and internal control as integrated parts of their management systems,” said IFAC CEO Ian Ball in a statement. “As the global organization for the accountancy profession, IFAC is encouraging and facilitating a better understanding of good practices in governance, risk management, and internal control, and greater global consistency in principles and guidelines to support effective implementation.”

The paper is aimed at the more than a million accountants worldwide who work as employees, advisors, consultants and self-employed owner-managers in commerce, industry, financial services, education, and the public and not-for-profit sectors. Governance, risk management and internal control are among the core competencies of professional accountants working in business.

“Organizations can be confident that professional accountants are able to contribute strongly to governance, risk management, and internal control,” said Ball. “This policy position paper, and IFAC’s supporting publications, provide leadership and guidance to the profession and will help facilitate a common view of how organizations can effectively implement governance, risk management, and internal control.”