Auditing: Risk Management Essay

Submitted By chhetriM
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a. What are the main points that the report identifies and why do you think this is so?
The report identifies the economic instability and uncertainty in the business organisation. It also identifies the efficient approach of government,risk and compliance (GRC). It identifies how to set the effective GRC approaches for greater insight into major risk and compliance obligations and how they are managed. it also identifies the effectiveness & adequacy of the internal control. It also identifies board of directors are facing stakeholders demands for tranparency and accountability in thier organisations governance system

“GRC is a system of people,process and techonology that enables an organization to understand prioritize stakehplder expections,set business objectives that are congrument with values and risk ,achieve objectives while optimising risk profile and protecting value,operate within legal contractual internal,social and ethical boundries,provide relevent reliable and timely information to appropriate stakeholders and enable the measurement of the performance and effectiveness of the system.

Governance: The governance process within organization includes elements such as definition and communication of corporate control,key policies,rules and complaince management. A governance process integrates all these elements into a coherent process to drive corporate governance.

Risk Management: Regulatory mandates and increasingly activist shareholders, many organizations have become sensitized to identifying and managing areas of risk in their business: whether it is financial, operational, IT, brand or reputation related risk.. A risk management process provides a strategic orientation for companies of all sizes in all geographies with a formal process to identify, measure and manage risk.
Compliance: An initiative to comply with a regulation typically begins as a project as companies race to meet deadlines to comply with that regulation. However, compliance is not a one-time event – organizations realize that they need to make it into a repeatable process, so that they can continue to sustain compliance with that regulation at a lower cost than for the first deadline.. The compliance process enables organizations to make compliance repeatable and hence enables them to sustain it on an ongoing basis at a lower cost.

Governance
Enterprise risk management and appraisal.
Board compliance capabilities , ethics and policy compliance, etc.
Business performance reporting such as balanced scorecards, risk scorecards, operational controls dashboards, etc
Policy management, documentation and communication
Risk Management
Risk appraisal
Risk analysis and prioritization
Root cause analysis of issues and mitigation
Risk analytics and trend analysis
Compliance
Flexible controls hierarchy
Assessments and audits
Issue tracking and remediation
Analytics

b. How do you think this report would benefit business entities, what type of entities and why?
The benefits of this report are several.It provides the clear vision of GRC in business organization . The framework of this report tell us that GRC function share common goals are the creation and preservation of stakeholder value, strategic risk management and compliance. Good governance and effective risk management help ensure the sustainability and success of modern large public and privately operated entities. They are also important in managing the risks associated with the outcomes of compliance failures such as tax shortfalls or overpayments.
Business entities can use GRC to address strategic issues which help to reduce their risk and control function to enhance their efficiency and effectiveness. it helps to enhanced risk management.it helps reduced burdon on business personnel.it helps to increased efficiency by using common language and structure.It helps to increased
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