risk assessment report
TRANSCRIPT
Risk Management
Report
Table of contents
Business contextI
Executive summaryII
Departmental wise risk analysisII
Business Context
Our understanding of your business context and scope of work
• Insert your understanding of the business context and the scope of work
Executive Summary
Risk areas across the major functions have been identified as a part of this assignment
ComplianceHuman
ResourcesMaintenance
Marketing & Strategy
Operations Accounts
• 7 areas of HIGH RISK and 6 areas of
MEDIUM RISK have been identified across
the organization
• Majority of the risk resides in the Operations
and Accounts function
Furthermore, risks have been categorized across 6 major categories
OperationalFinancial
Liquidity
ReputationalCompliance
Strategic
Recommended risk mitigation measures have led to an overall reduction in the risk score of the organization
InaccurateBilling
RevenueLeakage
BusinessForecasting
InaccurateEstimations
NegativeCashflow
Contractual Theft &Pilferage
PeopleDependence
Fire RepeatCustomers
EquipmentBreakdown
Attrition StatutoryCompliance
Pre Mitigation Post Mitigation
Data has been intentionally hidden to protect the privacy of the original report
Departmental wise risk analysis
Issue of inaccurate billing can be controlled through the implementation of a “maker-checker” system
External + Controllable
External + Uncontrollable
Internal + Controllable
Internal + Uncontrollable
Risk Classification
Risk Category
Issues of inaccurate billing
HIGH RISK AREA
Risk Response
Implementation of a maker-checker system i.e. the person who verifies the accuracy of the bill will be different from the maker of the bill
Controls Key Risk Owner Monitoring Response Analysis
Periodic internal audit should be undertaken by an independent third party to verify accuracy of the billing and collection process Accounts Head
• Monthly revenue reports
• Customer complaints on errors in the bill
Issue of revenue leakage can addressed through a zero tolerance policy
External + Controllable
External + Uncontrollable
Internal + Controllable
Internal + Uncontrollable
Risk Classification
Risk Category
Issues of revenue leakage
HIGH RISK AREA
Risk Response
A zero tolerance policy should be applied towards any identified forms of revenue leakage
Controls Key Risk Owner Monitoring Response Analysis
Revenues should be generated automatically through your internal billing systems
Collection Officer
• Overdue reports• NC Authorization
Reports• Ageing Analysis
Issue of incorrect estimates and provisions can be controlled through effective interdepartmental coordination
External + Controllable
External + Uncontrollable
Internal + Controllable
Internal + Uncontrollable
Risk Classification
Risk Category
Use if incorrect estimates and provisions
MEDIUM RISK AREA
Risk Response
Top management should encourage and drive constant inter-departmental coordination
Controls Key Risk Owner Monitoring Response Analysis
Build active provisioning policies and follow industry standards in relation to estimation and provisioning
Accounts Finance
• Provisioning List• Wastage Control
Report
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