A person holding this place is tasked with inspecting the monetary information and operational procedures of economic establishments. This examination ensures adherence to regulatory requirements and inner insurance policies. For instance, such a person would possibly scrutinize a financial institution’s mortgage portfolio to find out the extent of danger related to its lending practices.
The importance of this function lies in its contribution to the steadiness and integrity of the monetary system. By figuring out weaknesses in inner controls or cases of non-compliance, this skilled helps to stop fraud, mismanagement, and in the end, monetary crises. Traditionally, these roles turned more and more necessary following intervals of financial instability, highlighting the necessity for rigorous oversight.