Chairman of the Audit Committee Board at Ghana Commercial Bank, Ray Ankrah, has underscored the critical importance of internal control in banking operations – emphasising that the industry’s success and stability depend on effective internal control measures.

Mr. Ankrah highlighted the importance of providing assurance to management that the control environment is effective, processes are optimised and profits are enhanced, especially in the face of disruptions in global business and challenges.

The ever-changing landscape of regulations and technological advancements should prompt banking industry leaders to recognise the importance of implementing robust internal control measures. This, coupled with internal audit, works to reinforce each other and ultimately contribute to a resilient banking system, he noted.

“Internal control is crucial for banking operations as it provides assurance to management that the control environment is effective, processes are optimised, and profits are enhanced. Internal control and internal audit are complementary and work together to reinforce each other. The internal control environment’s robustness makes the internal auditor’s work easier. In the face of global disruptions and challenges, a resilient banking sector is essential for economic stability,” he said.

He spoke at the Network of Heads of Internal Control inauguration by the Ghana Association of Banks in Accra.

Commending the initiative taken by the association to collaborate and share knowledge among banks, he said the move can serve as a model for other institutions to address common problems and create effective systems for financial success and job creation.

The collaborative effort aims to build a resilient banking sector that can withstand shocks and disruptions, ultimately benefitting the wider economy.

CEO-Ghana Association of Banks, John Awuah, stressed the importance of ensuring that well-designed processes are functioning as intended; stating it is the responsibility of certain individuals to guarantee their operational effectiveness, hence the board’s inauguration.

Mr. Awuah mentioned that he is keen on ensuring internal control measures are robust and effective, especially in the face of increasing digitalisation and remote operations. He added: “With the increasing digitalisation and remote operations, it is important to replicate the controls that were previously in place for in-person interactions”.

He also emphasised the need for collaboration among different banks to benefit from synergies, as each bank may have different approaches that can be combined to create the most efficient practices and ensure strong controls within the banking system.

“They have a coordinator who oversees assignments and tasks, drawing on member-banks to form working groups and execute plans. Regular reports will be issued and reviewed within the banking sector to ensure compliance and control,” Mr. Awuah said in explaining how the board will operate.

The interim executives, Network of Heads of Internal Control include: Albert Bartlett-Mingle, President; Joseph Acquah, Vice President; Evans Sallah, Secretary; Abiana Nelson, Treasurer; Ishmael Oku, Publicity Secretary; Georgina Aweittey, Executive member; and Dan Opare as advisor.

Ghana Commercial Bank was praised for its significant contribution in ensuring a successful execution of the inaugural ceremony from start to finish.

The Network of Heads of Internal Control inauguration was attended by key figures in the banking industry, who expressed their support for the collaborative effort.