“ELAM's Process Audit Principles for Risk Management”
The effective management of risk is vital to the continual growth and success to any organization. For risk management to be effective, all operation process most apply standard principles to the context of their particular business requirement and objectives with following principles:
- Risk Management Must Create the Product Value
- Risk Management is Integrated into Organizational Process.
- Explicit Risk Management helps decision-makers with informed choice.
- Risk Management is focused on the source of uncertainty around the achievement of objectives.
- Risk Management most be Tailored to the Context and fit for Purpose.
- Risk Management is Dynamic, Interactive and Responsive to Change.
Effective Internal Control and Risk Management Practices is an outcome of continual improvement and rigorous follow-up. The Culture of Periodic Business Planning, Effective Implementation Rhythm, Periodic Review and Timely Decision Practices is essential for business graduation and further growth.
Similarly, linking potential business risks to the company’s strategic business objective is also vital for converting those risks into opportunities for growth seeking organization. Vibrant working culture within organization is the result of it’s structure where one need to focus when necessitate.
To establish system and process in operation and take the ownership of such system and process making those responsible for achieving strategic objective also responsible for managing related risk.
“People do what you inspect not what you expect” therefore, everyday update meeting and periodic review of performance from the prospective of potential risks and opportunities across operation is must in this competitive environment.