Risk Assessment

The Risk Assessment is designed to focus on an institution’s profile, strategic objectives, business changes, and the specific risk concerns of the Audit Committee and Senior Management.

Our risk assessment approach is composed of three distinct phases, the foundation of which is planning. During our planning phase, we not only review current process and documentation, but also confirm business and operational objectives, address areas of inherent risks that are relevant to these objectives and schedule information gathering sessions with management and key process owners.

Risk Assessment Services

A typical PKM risk assessment approach includes the following activities:

  • Prepare the preliminary scope using a top-down approach through review of current plans and organizational structure.
  • Conduct interviews with key members of Executive and Senior Management and the Audit Committee to understand the Organization’s views of risk and key areas of concern.
  • Conduct interviews with business unit and support personnel.
  • Determine key activities and processes of each audit area, including key information systems and reliance on third party service providers.
  • Identify key initiatives and/or pending changes within the organization.
  • Assess inherent risks.
  • Assess the quality of the internal control structure of each business area and the associated lines of business, processes or activities.
  • Assess residual risk (the risk that remains after controls are taken into account, or the net risk after controls and / or other mitigating factors are considered) based on the inherent risk assessment and consideration of the internal control structure and risk management system.
  • Compile and analyze the risk inventory and finalized the overall risk assessment and internal audit plan.

The end result will serve as the basis for prioritizing and allocating resources, specifically to those areas posing a greater degree of risk to the organization.

Contact Us

For more information on a PKM Risk Assessment, contact Risk Advisory Partner Sonny MacArthur at (404) 420-5631 or smacarthur@pkm.com today to learn more or to schedule a consultation.