WarbaBank

• Hanan Ghanem Hamadah emphasizes the evolving role of internal audit from traditional compliance to proactive risk forecasting at a KBA panel

Warba Bank emphasized the role of internal audit in strengthening institutional resilience and business continuity amid rapid global geopolitical and economic shifts. Hanan Ghanem Hamadah, Acting Chief Internal Auditor at Warba Bank, noted that these evolving dynamics require key sectors to redefine institutional readiness and strengthen their crisis response capabilities.

Speaking at a panel discussion titled "Building Institutional Resilience: The Evolving Role of Internal Audit During Geopolitical Crises," organized by the Kuwait Banking Association (KBA), Hamadah joined internal audit experts from Kuwaiti banks and the oil sector to highlight internal audit's increasing role in managing emerging risks across sectors tied to economic stability.

The Evolving Role of Internal Audit:

Hamadah explained that the concept of internal audit has shifted significantly from a traditional, compliance-focused oversight function to becoming a strategic partner. In this capacity, it supports executive management and boards of directors in forecasting risks, assessing institutional readiness, and improving the effectiveness of governance, risk management, and compliance (GRC) frameworks.

"Successive global health, economic, and geopolitical crises have proven that the institutions best equipped to sustain operations and recover are those with flexible control systems, clear proactive plans, and an adaptable corporate culture," Hamadah stated. She added that internal audit plays a direct role in assessing organizational preparedness for contingency scenarios by reviewing business continuity plans, testing crisis management strategies, and ensuring frameworks are in place to restore critical operations efficiently.

Proactive Planning and Emerging Risks:

Hamadah pointed out that modern institutions no longer rely on reactive approaches after a crisis occurs. Instead, they adopt a proactive methodology based on scenario analysis, identifying operational gaps, and enhancing inter-departmental coordination to mitigate potential threats.

She added that current geopolitical challenges have introduced wide-ranging operational and strategic risks, notably supply chain disruptions, market volatility, cyber threats, and compliance risks. "These variables demand more agile internal audit departments that utilize advanced analytics and digital tools for proactive risk assessment," Hamadah said. "Digital analytics serve as early warning indicators, supporting decision-makers with accurate, timely data to improve crisis response times."

Integration and Global Standards:

Hamadah stressed the importance of integration between internal audit, risk management, and corporate compliance to build a resilient institutional framework. She noted that strengthening internal collaboration supports a balance between strict regulatory compliance and operational agility, while providing independent assurance to stakeholders, regulators, and shareholders regarding the effectiveness of the bank’s internal controls.

Hamadah said building institutional resilience is a strategic necessity to protect stakeholder interests and maintain financial stability. She affirmed that the Kuwaiti banking sector, guided by the regulatory directives of the Central Bank of Kuwait (CBK), continues to adopt international best practices in governance, and emphasized that the next phase requires further investment in developing national talents and technical readiness.

About Warba Bank:

Warba Bank is a leading Islamic bank in Kuwait with a strong focus on Sharia-compliant digital banking. With one of the largest shareholder bases in the country, the bank continues to deliver innovative financial products and services, reinforcing its position as a digital-focused institution.