Risk management activities include both general controls and individual controls. General issues include those related to the management and infrastructure of the information system, security, program development, and maintenance. To carry out this type of test, it is necessary to have available documentation to check the reliability of the new system.
Changes to the security system can be assessed by ensuring that access procedures are in place. The assurance needed to complete, authorize, and validate information during the process is a significant objective. Some controls that can be used by the company include the use of comparison techniques and the reconciliation of new data.
Other, more specific, controls will have to be put in place, about the strategies, objectives, and sectors of activity. Controls should reflect and reflect the environment in which the business operates. Varied or highly specialized, the various operations may require more sophisticated controls than those that may be related to more general and less complicated activities.
The risks to which the organization could be exposed will also define the nature and complexity of the control to be put in place or required. More information about the control of information and accounts can be obtained through numerous tests. Risk management must be part of the broader framework of corporate governance.
Risk management and corporate governance
Risk management and corporate governance are two inseparable concepts. Their holistic or integrated approach to risk is a response to the risk age of organizations. Risk management and corporate governance are intimate.
Indeed, according to experts, risk management is a process implemented to lower the risks taken by a company. It is intended to recognize likely actions that can affect the organization and manage risks within the limits of its risk appetite. It is designed to offer a reasonable guarantee as to the achievement of the objectives of the organization.
But the debate on corporate governance, in the United States, in Canada, in Asia and Europe follows the many scandals that have plagued large companies. The challenge for governance is precisely to guard against internal and external, operational, and strategic risks that could compromise the achievement of the objectives set by the organization. Calls for stronger corporate governance and risk management have been launched in recent years. Contact Cane Bay Partners for more details.