Risk and Control: Ideas for a better tomorrow

IPPF and Recommendation

March 9, 2013Manoj2

This is a work of fiction. If you find any similarities with a real life situation or a person then you should ignore real life situation/ person. As author of this work has limited the scope of this work to fiction. A fictional dialogue between Management and Internal Audit. Management: I need you to look […]

Resource Management and IPPF

February 13, 2013Manoj

Resource Management and IPPF. IPPF requires that internal audit activity does a proper resource management. Standard Requirement Interpretation 1110 Board to approve internal audit budget and resource planBoard to inquire with management and CAE to determine the inadequacy of scope and resource limitation Internal audit cannot execute an internal audit plan without proper resources. With […]

Inventory of contracts – Issues and solution

February 20, 2012Manoj

Inventory of contracts is often overlooked area which can give rise to risk to organization. A typical organization with decent size may have the following departments: Sales Department Marketing Department Purchase Department Stores Department Human Resource Payroll Administration Commercial Accounts (This is a very simple list. MIS used by organization would give a clear picture) […]

Revenue Assurance

January 4, 2012Manoj

Revenue Assurance is becoming a favorite subject of all Internal Audit Professionals. Revenue Assurance is made popular by telecommunication industry due to ever-increasing plans offered to consumers. Revenue Assurance, is being practiced in a different forms by companies for a long time: Lost Sales analysis Opportunity lost Delay in project execution Shipments without order Provision […]

ERM FAQ 5 – Risk Response: What are risk response?

June 15, 2011Manoj

Businessdictionary.com defines risk response as “Appropriate steps taken or procedures implemented upon discovery of an unacceptably high degree of exposure to one or more risks. Also called risk treatment.” The purpose of risk response is to bring the risk to the acceptable level of Risk Appetite. Risk response is connected with Risk appetite that in […]

ERM FAQ-4 -Risk Assessment

May 15, 2011Manoj

Question 4: Risk Assessment? Organization need to find the factors that are giving rise to risk to the goals of the organization. Risk Assessment comprises of processes for: Identifying Analyzing and Evaluating risks. Risk Identification: Organization can use varieties of techniques for risk identification. These techniques can be used either in isolation or in combinations. Following […]

ERM-Faq-3-How the risk appetite and risk tolerance limits set by the organization

April 24, 2011Manoj1

Business Objectives and strategy drive Risk Appetite. If organization has profitability in mind, they will have low risk appetite. However, if organization will have higher risk appetite if they have market share in mind. Risk appetite can be: 1. A certain number, 10 Lac, 100 crore, etc., 2. Certain ratio (No profit, no loss, till […]

ERM-FAQs-2-What is Risk Tolerance?

April 15, 2011Manoj

Question 2: What is risk tolerance?Risk tolerance is ability to absorb risk. Risk tolerance is the ability to face/ bear/ absorb the negative side of uncertainty on goals. Investopedia defines Risk tolerance as “The degree of uncertainty that an investor can handle on a negative change in the value of his or her portfolio” ISO […]

Enterprise Risk Management- FAQs-1

April 9, 2011Manoj

Recently I got the honour of becoming course coordinator for ‘Certificate Course on Enterprise Risk Management’ conducted by Institute of Chartered Accountants of India www.icai.org. This course is spread across 6 week-ends followed by an exam. It is interesting to see that Risk Management is still in infancy and the concept though becoming popular, is […]