Don’t Risk Poor Controls.
Risk taking is an innate quality of entrepreneurs. However, those with prowess have the art of maximising beneficial opportunities and avoiding detrimental risks, thus limiting the potential for loss. With this in mind it is the responsibility of management to undertake regular risk management reviews and establish effective internal controls. Areas of risk to be considered include:
- Business risks
- Operational risks
- Financial risks
- Compliance risks
The deliberation process should:
- Assess the nature and extent of all risks
- Determine which risks are acceptable for the business to bear
- Evaluate the likelihood of each occurring
- Consider the ability to mitigate the impact of any risks which do materialise
- Compare the costs of operating the controls relative to the benefit that they offer
During an audit we assess internal control systems to enable us to report any significant weaknesses in controls. Our experience of working with various types and sizes of entities enables us to offer all of our clients valuable advice on improving internal controls and managing risk.