Risk Audit is one of the key focus areas of CRP’s Internal Audit and Consulting Services. Risk by definition means any unforeseen event which can result in quantifiable business loss due to stoppage of work, damage, fraud and theft or any natural acts of nature. Thus, Risk Audit’s biggest challenge and success is the ability to map each and every possible risk which any business may face and quantify it with an economic value. Thus, Risk Audit is based on a clear value proposition of criticality based on Business Continuity Plan (BCP) hierarchy matrix.

CRP’s Risk Audit ensures adherence to Internal Control procedures and processes as laid down by the company. The consultants work closely with companies to develop internal control mechanisms based on risk for each and every individual process. The experience of working in various industry verticals gives the leverage of cross functional experience in creating full proof Risk scenario for companies and also ensuring regular audits.

How Risk Audit is carried out?

Risk audit today has become an important area for ensuring smooth running of business. Also, along with business risks, it addresses risks that arise out of human failure, intentional fraud and breakdown of processes. Thus, Risk Audit firstly involves a thorough understanding of the business and risk exposure areas that can result in severe economic loss. This exercise is carried out by a combination of human understanding skills and high end technology tools. The success of a Risk Audit is to ensure on a regular basis detection of new areas of risk, assign percentage value to them and create corrective measures to ensure business continuity.

One of the key strengths of CRP team’s approach is its repository of experience in internal audit and accounting departments of companies; this gives the consultants an immediate understanding of the processes and systems being followed by any client. Also, a judicious mix of physical verification, past data analysis and software tested process robustness check ensure that clients get compelling value addition from such audits.

Advantages

Risk Audit is one of the oldest and most traditional ways of ensuring compliance; it is sometimes felt that Internal Audit is a mirror of Statutory Audit in terms of management reporting and controls.

One of the key advantages of Risk Audits is to ensure regulatory compliances such as that of SEBI which requires compulsory Internal Audits for companies with turnover over a certain amount. Also, Risk Audits are being globally used by senior management and boards to ensure legal protection in case of any untoward incident in the company. While, no organization is risk free, Risk Audits are helping corporations across the globe to minimize adverse possibilities.

Risk Audit is usually carried on a quarterly basis and its regularity is itself a sign of risk management. It helps organizations become more diligent in their business processes and create uniformity of action across the corporation. Last but not the least, the most important aspect of Risk Audits is that any exception found during such audits can be corrected and streamlined, unlike a Statutory Audit, where deference amounts to violation of the law and results in penal action to the company and its executives.

Risk Audits

Introduction

The key steps to a Risk audit are aimed at identifying possible risk areas and then creating checks and balances to ensure non-occurrence. Some of the key areas are:

How Risk Audit is carried out?

Advantages

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