Today’s business world is continually evolving, with companies facing evolving technologies, increased regulation, risk, and a rapidly changing global economy. By its very nature, business is a constant state of managing risk. Risk Assessments provide a tool for identifying what risks represent potential pitfalls in managing operational, business, and financial reporting risk. A strong financial risk assessment allows an organization to evaluate its quantitative and qualitative risks related to key financial reporting processes, susceptibility to fraud, regulatory issues, operations, and entity wide governance.
A strong IT risk assessment allows an organization to evaluate its IT infrastructure as it relates to data integrity, operations, regulatory issues, operations, security and privacy, and business continuity/disaster recovery. Done right, a risk assessment gives organizations a clear view of variables to which they may be exposed, whether internal or external, retrospective or forward-looking. A good assessment is anchored in the organization’s defined risk appetite and tolerance, and provides a basis for determining risk responses.