The Impact Of Internal Audit On Improving Risk Management Pursuant To Internal Auditing Standards In Commercial Banks Listed On Amman Stock Exchange In Light Of The Covid-19 Pandemic

Abstract

The losses caused by the Coronavirus pandemic exceeded all the risks that affected us during the previous years, such as social, material, religious, political, and other crises. It's worth taking a moment, the pandemic is still confusing the world, and most countries seek to have back their normal life. However, the world is yet suffering from this crisis impacts and therefore we need to evaluate all the taken measures and re-examine them, particularly here in Jordan, as we were suffering from an economic crisis, and then the current pandemic has exacerbated it.

This study aims to identify whether the commercial banks in Jordan had precautionary measures to confront the Covid-19 pandemic risks, or were they planning to take the appropriate measures at the meantime? Also, to figure out whether the taken precautionary measures before the Coronavirus pandemic occurred to confront these risks are sufficient or not? As a result, a questionnaire was distributed to the internal auditors and risk managers in commercial banks. And through the study sample, we concluded that Jordanian banks were not much affected by government decisions related to the Coronavirus pandemic. It comes out that financial stability in Jordan is firm and abiding. Additionally, banks were taking precautionary measures to protect their employees and the interests of their customers, lenders, and investors.

Also, it can be proved from the current study that Jordanian banks were able to adapt to health, environmental and other risks. And thus whether before or during the Coronavirus pandemic, which led to financial stability, and this was confirmed by Standard & Poor’s global agency, where sovereign credit rating for Jordan - it is an independent assessment of the creditworthiness of a country-  was BB +, namely, with a stable future outlook despite the low credit rating of the surrounding countries.