The financial crisis has sharpened directors’ focus on risk management, but this is not being backed by internal audits, a new survey has found.

Global risk consulting firm Protiviti surveyed 156 Australian CFOs and found 67% had observed an increase in their board’s scrutiny of risk management practices.

But 60% said the scrutiny didn’t lead to a rise in the extent of independent checks through internal audit reviews.

Protiviti Australia MD Mark Hamill says quality internal audits can be a valuable governance tool for boards, but many directors don’t tap into this resource because they lack confidence in the audit team, or aren’t aware of how a capable team can support them.

“Non-executive directors in particular are at a big information disadvantage as they don’t have the same coalface knowledge as management about what’s going right and wrong in the business,” he said.

The survey found that while the vast majority of organisations saw their risk management as far from perfect, few in the current economic climate were prepared to make the investment needed to bring it up to scratch.