Control Objectives to Risk Linkages

I have come across an interesting question on linkages between Risk and Control. Usually we start with risk and identify controls to mitigate the risk.  Now imagine a scenario, where you have taken over a new position and the first request that comes to you is listing of risk that a control was supposed to treat/ […]

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

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 […]

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ERM FAQ-4 -Risk Assessment

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 […]

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ERM-FAQs-2-What is Risk Tolerance?

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 […]

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Enterprise Risk Management- FAQs-1

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 […]

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