To analyze and address the risk in the company, due diligence and effective risk assessment is done.
Types of Risk
Following risk assessment is done in order to analyze the risk in the company:
Market Risk Assessment
It is concerned with the market access, quality of the product, power generation, counter-parity and pipelines.
Technology Risk Assessment
Technology risk is related to the environmental technologies such as bed methane, hydrogen production, processing, and synthetic crude oil.
Project Risk Assessment
It is related to the procurement, cost and quality, including infrastructure and construction on-site and off-site.
Policy, Regulatory and Stakeholder Risk Assessment
It is concerned with the issues related to key government and environmental issues.
Usually, an organization fails to meet its objective and incur losses because of the following below mentioned reasons:
- Unseen Risk–It arises when emerging risk cannot be anticipated.
- Known Risk– It is a known risk which cannot be managed.
- Control Failure– In case inadequate controls fail to mitigate the risk.
We offer the services related to risk assessment to help the management to identify and evaluate risk associated with the organization. We use the best risk assessment models that consists the industry standard risk factors. This model also includes the strategic risk and risk control self-assessment workshops to identify the potential risk and to address the risk associated with the company.
Risk Assessments Considerations
Potential loss can be mitigated through risk assessment.
Loss is usually occurred due to the following reasons:
- Fraud occurred;
- Failure in compliance with the statutory requirements and
- Actions which give negative effect on the working of an organization.
Following below mentioned points must be considered for effective risk assessment:
- Identification of emerging risk;
- Risk associated with the object of the business;
- Actions which can go wrong;
- Impact of the negative effect;
- Frequency of negative effect;
- Process of mitigating the risk.
Process of Systematic Risk Assessment
A systematic risk assessment involves a process of risk identification. On the basis of the specific risk factors, potential audit is done regarding the operations carried out by the organization. This is done in order to give assurance to the organization regarding risk tolerance that it is within the expectations of the management.
Under this process, risk management team is constituted and thereafter risk assessment model is prepared. Under this model, priority is given to the potential audit areas through surveys, questionnaires and strategic interviews and also through the expertise of risk management team. A proper audit plan is prepared under which audit personnel is assigned to the major risk areas.
Following types of audits are considered in the audit plan:
- Financial Audit
- Operational Audit
- Compliance Audit
- Information Technology Audits
- Review Internal Control
- Examination of fraud
- Special projects
Risk Assessment Plan
Our Approach and Methodology
We adopt an interactive approach with the client for documentation and for the assessment of the exposure of the organization to fraud and other unauthorized activities.
Two different methodologies are used for risk assessment:
- Industry-Specific Risks and
- Enterprise-Wide Risks,
Our team will tailor the risk assessment as per the needs of your organization.