Procedure to control the risk
2.4 The Director, Governance and Risk Management is responsible for managing and maintaining the Universitys Risk Management Framework. The probable expenditure or the economy of loss prevention, (it should be remembered that any extra expenditure for loss prevention would be economically justified so long the expenditure made is smaller than or at best equal to the savings made by way of loss reduction. Identification After establishing the context, the next step in the process of managing risk is to identify potential risks.
Likelihood: Likelihood measures the expected frequency of a risk occurring. Apart from the insurance device, there are certain other techniques by which the risk may be transferred.
Risk Management Definitions Risk management is an integrated process of delineating specific areas of risk, developing a comprehensive plan, integrating the plan, and conducting the ongoing evaluation.-Dr. This common approach to risk rating is necessary to ensure that the most significant risks to the University can be readily identified and prioritised in a way that has the greatest overall benefit to the University.
The purpose of this step is to put in place one or more options (controls) to reduce the level of residual risk to a level that is considered acceptable by the University. What should be done when a loss takes place? Numerous different risk formula exists but perhaps the most widely accepted formula for risk quantification is the rate of occurrence multiplied by the impact of the event. Furthermore; Evaluating the severity of the consequences (impact) is often quite difficult for immaterial assets.
Our audit accounting professionals have experience and proficiency in many types of audit services. Risk registers are reviewed on a quarterly basis to ensure that the identification and treatment of risks is managed on a timely basis. Create the Plan Decide on the combination of methods to be used for each risk. There are two primary reasons for this; To evaluate whether the previously selected security controls are still applicable and effective, and, To evaluate the possible risk level changes in the business environment.
What is the probable impact of a loss should it at all occur? Once implemented, treatments provide or modify the controls. 2.7 Assurance play a role in monitoring and reporting to the Council and Audit and Risk Management Committee on the Universitys management of its risks, by assessing the internal controls in place to mitigate risks and recommendations to enhance the Universitys risk management framework. 2.5 Risk Owner s are identified for all risks that are included in the risk registers.
This is reinforced through the Universitys risk appetite and by training and communications. Accept the risk: Controls are deemed appropriate.
These risks are the risks at the operational levels of the University. Risk management anticipates, detects, acknowledges and responds to those changes and events in an appropriate and timely manner.
Transfer the risk: Shifting responsibility for a risk to another party by contract or insurance. Essentially risk management is the combination of 3 steps: risk evaluation, emission and exposure control, risk monitoring.