Disadvantages Of Risk Management

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a) Risk Management Workflow 2. Risk Profiling Risk profiling is a process for finding the optimal level of investment risk for your client considering the risk required, risk capacity and risk tolerance, where, risk required is the risk associated with the return required to achieve the client’s goals from the financial resources available, risk capacity is the level of financial risk the client can afford to take, and risk tolerance is the level of risk the client is comfortable with. Risk required and risk capacity are financial characteristics calculated using your financial planning software. Risk tolerance is a psychological characteristic which is best determined by way of a psychometric test. Risk profiling requires…show more content…
Documentation When all the risk associated with the organization are analyzed , it is important to document all so that each risk can be prioritized according to its vulnerability. In the Documentation phase we do the same i.e. we prioritize each risk. Risks related to IT systems or applications must be identified and documented based on the methodology in NIST SP 800-30, Risk Management Guide for Information Technology Systems. IT system or application weaknesses must be identified on an associated plan of action and milestones (POA&M) and tracked in accordance with HHS POA&M guidelines. 6. Risk Mitigation Risk Mitigation is the process by which an organization bring some ways through which any risk that is associated with the operation part of that organization can be reduced or can be eliminated. The ways of Risk Mitigation can minimize the consequences or may reduce the chances of risk to be materialized. Hence, reduces the exposure of that particular organization against risk. The strategies used for mitigation of risk called as risk mitigation strategies can be thought, only when you have evaluated the system completely and identified all the possible threats, or vulnerabilities. 7.…show more content…
The Continuing Care Checklist should be kept with the completed version of this risk validation document. 8. Monitoring and Audit After implementation of risk assessment techniques, it is important to monitor all the techniques or strategies that, we have implemented. So in any case, if anyone is not working, then immediately we can take any required action. Risk monitoring control is the process of keeping track of the identified risk, monitoring residual risks and identifying new risk, ensuring the execution of risk plans, and evaluating their effectiveness in reducing risk. Risk monitoring and control records risk metrics that are associated with implementing contingency plans. Audit Risk is the risk that the auditor expresses an inappropriate audit opinion on the financial statements. Audit risk therefore includes any factors that may cause a material misstatement or omission in the financial statements. Whereas business risks relate to the organization and its stakeholders, audit risk relates specifically to an auditor. Although audit risks and business risks are dissimilar in nature, it is often the case that identification of significant business risks lead to the detection of audit
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