KnowledgeLeader Blog

How to Assess Your View of Future Risks

Posted by Protiviti KnowledgeLeader on Fri, Nov 15, 2019 @ 09:08 AM

Given the complexity of the business environment, executives need to be careful to avoid overconfidence that can be bred by an expressed or implied “official” view of the future during the risk assessment process. Overconfidence is a powerful source of illusions. It is often driven by the degree of success managers have experienced and the quality and coherence of the storyline they construct regarding the future they envision. Scenario planning is the process of testing management’s “view of the future” by visualizing different future conditions or events, what their consequences or effects would be like, and how the organization can respond to or benefit from them. Scenario planning avoids the risk of a single view of the future by enabling management to identify the likely direction and order of magnitude of the effects of changes that affect the drivers of the enterprise’s revenues, costs, profits and market share.

Read More

Topics: internal audit, risk assessment, KL Tools

Traditional Risk Assessment Approaches Have Limited Value

Posted by Protiviti KnowledgeLeader on Fri, Nov 08, 2019 @ 10:05 AM

Developing risk maps, heat maps and risk rankings based on subjective assessments of the severity of impact of potential future events and their likelihood of occurrence is common practice. These approaches provide an overall picture of the risks, seem simple and understandable to most people, are often the result of a systematic process, and provide a rough profile of the organization’s risks.

Read More

Topics: internal audit, risk assessment, KL Tools

The Best Way to Formulate and Execute Audit Procedures

Posted by Protiviti KnowledgeLeader on Thu, Oct 17, 2019 @ 04:32 PM

Once a company forms an internal audit function, completes the risk assessment process and develops an internal audit plan that is responsive to the risk assessment, it can initiate individual internal audit assignments.

Read More

Topics: internal audit, risk assessment, self assessment, KL Tools

A Compliance Perspective to Risk Assessment

Posted by Protiviti KnowledgeLeader on Thu, Aug 15, 2019 @ 05:11 PM

Making Your Risk Assessments Count: A Compliance Perspective to Risk Assessment

The traditional approach for assessing compliance risks focuses on the severity of impact and likelihood of occurrences, often on a residual risk basis. This approach often results in a cluster of low likelihood risks with various levels of potential severity and fails to address the potential implications to the enterprise of a breakdown in established policies and procedures. For compliance risks, in lieu of mindless guesswork on probabilities, companies should consider the effects of noncompliance events in terms of the following factors:

Read More

Topics: risk assessment, risk, KL Tools

An Operational Perspective to Risk Assessment

Posted by Protiviti KnowledgeLeader on Fri, Aug 09, 2019 @ 09:37 AM

Making Your Risk Assessments Count: An Operational Perspective to Risk Assessment

Operational assessment is often directed to assessing performance against quality, time, innovation and cost targets to identify gaps in process performance. Significant performance gaps lead to decisions around making appropriate midcourse corrections or analyzing root causes with the objective of determining actionable process improvements to close the gaps. Given this traditional approach to an operational review, the question of the appropriate level of focus arises when evaluating operational risks.

Read More

Topics: risk assessment, risk, KL Tools

Consider the Distinguishing Characteristics of Risk

Posted by Protiviti KnowledgeLeader on Thu, Aug 01, 2019 @ 05:02 PM

Making Your Risk Assessments Count: Consider the Distinguishing Characteristics of Risk

Traditional risk assessment approaches don’t often address the unique risk characteristics most companies face. While using a common analytical framework to evaluate risks with different characteristics may make the assessment process easier to execute, it also may not be as effective as approaches that could provide more insight into how to respond to assessed risks.

Read More

Topics: risk assessment, risk, KL Tools

What is the Internet of Things?

Posted by Protiviti KnowledgeLeader on Thu, May 23, 2019 @ 04:15 PM

The internet of things (IoT) is an environment in which “things” – objects, animals or people – are given unique identifiers on the internet and are able to transfer data over a network without the need for human-to-human or human-to-computer interaction. The IoT has evolved from the convergence of wireless technologies, micro-electromechanical systems (MEMS) and the internet.

Read More

Topics: risk assessment, IT strategy, privacy, business continuity management, KL Publications, mobile devices

Exploring the Big Picture of IT Risk Assessment

Posted by Protiviti KnowledgeLeader on Thu, Mar 28, 2019 @ 05:26 PM

Most, if not all, business transactions executed today touch the information technology (IT) environment at some point in their lifecycle. As organizations plan for the next calendar year, it’s logical to regard the IT risk assessment as a critical component that should be reviewed through the internal audit function.

Read More

Topics: laws & regulations, compliance, risk assessment, performance management/measurement, KL Tools

What Is Intellectual Property and What Are the Risks?

Posted by Protiviti KnowledgeLeader on Thu, Feb 21, 2019 @ 05:15 PM

Copyright pirates, brand impersonators, patent flouters and trade secret thieves are a major threat to businesses, given their increased aggressiveness towards intellectual property (IP) theft. These, and any other original creative works that have economic value and are protected by law, can be categorized as IP.

Read More

Topics: enterprise risk management, risk assessment, strategic risk, data security,, performance management/measurement, KL Tools, intellectual property

Key Performance Measures for Improving the Internal Audit Process

Posted by Protiviti KnowledgeLeader on Thu, Jan 03, 2019 @ 10:21 AM

An effective business process is built on a set of well-defined and clearly stated business objectives. These key objectives articulate the ideal performance results that the company expects from that process. To monitor a business process so that it stays focused on reaching the key objectives, the company chooses appropriate performance measures. Careful selection of the performance measures takes a company a long way toward improving a business process. Thus, to build and continually improve an effective business process, a company establishes:

Read More

Topics: internal audit, risk assessment, quality assessment review, performance management/measurement, KL Tools

Add a Comment:

Subscribe to Our Blog

About KnowledgeLeader

KnowledgeLeader, provided by Protiviti, is the premier resource for internal audit and risk management professionals.

With over 1,400 customizable tools and 1,300 articles by industry experts, we offer the most comprehensive service on the market.

For more information:

 Tour the Site

Recent Posts

Posts by Topic

see all