Troubleshooting and catching commercial risks early to ensure maximum turnover.
R
isk assessment involves the systematic process of identifying and evaluating potential risks that may influence a company’s pursuit of its business goals and objectives. As such, this arena includes helping ventures recognise risks they may face, and advising on how to engage with these perceived risks while taking the risk appetite of the corporation and potential returns into account. It can be packaged with governance advisory services, which shed light on the process of running an organisation to meet expectations of the management, stakeholders and staff. On occasion, risk assessment services are also offered alongside compliance advisory services, for firms to get in touch with new laws and rulings issued by the government. Investors and business managers also require risk assessments to make informed decisions and pursue gains while avoiding losses from undertaking investments.
General overview Graduate hires tend to start out in a broader area, such as assurance, for training before they specialise in risk assessment. However, some companies, particularly larger organisations that prefer to train applicants in-house, may choose to absorb them directly into their risk assessment department. Trainees are typically expected to monitor daily business functions, evaluate the efficiency of existing risk controls and assist with the preparation of recommendation reports for clients. From there, graduates will move on to planning, designing and supervising the implementation of a risk management process and continuity plans for a firm. In addition, it will be their duty to establish and determine the risk appetite of a venture. Risk assessors usually work closely with executive boards and senior management, and provide them with insights on a range of issues, from security, fraud protection and management of technology departments, to ecological and social performance.
Required skills In-depth knowledge of enterprise risk management (ERM) programmes and Risk Control Self Assessments (RSCA) is needed, along with a comprehensive understanding of the various types of risks that a firm may face, both locally and internationally. Excellent communication skills are vital for reporting to, and advising, the board of directors, business heads and department managers. Besides conveying messages in a way that is relevant to each of them, good interpersonal skills and confidence will be a bonus for client interactions. Keeping abreast of the latest changes in laws and regulations so as to offer clients up to date assistance is crucial as well.
Pros and cons
The work is intellectually stimulating, particularly with international institutions and government ministries, as risk assessors help decision-makers avoid risks and capitalise on opportunities. However, the role is also chiefly consultative and supervisory, which means that graduates will hold little decision-making power. Frustration with clients who are difficult to manage, or are unwilling to take advice, is a reality as well.
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ACCOUNTANCY AND FINANCIAL MANAGEMENT - Area of Work
RISK ASSESSMENT
