...large emphasis on financial risk assessments. The risk assessment process is needed to identify risks that need to be treated within an organization, as well as to provide strategies and methods that are most appropriate to treat these risks. Because many organizations are poorly aligned between their risk exposure and their risk appetite, it is important to engage in the risk assessment procedures. These procedures can help an organization prevent risk exposure and determine if their current operations will result in an increase or decrease of market value and owners’ wealth. As a result of the economic crisis, and the recent increase in corporate failures, organizations can now learn from the mistakes of others. This paper will discuss the mistakes that lead WorldCom, a telecom company that was once the fourth-ranked in Fortune 500, to bankruptcy in 2002, in an effort to demonstrate the importance of successful risk assessment and alignment implementation. Keywords: corporate failure, risk analysis, risk assessment, risk management, WorldCom Over the past years, and as a result of high profile firm failures, the economic crisis, and increased regulatory pressure, many organizations have placed a large emphasis on financial risk assessments. Risk assessment is the process where risk managers analyze the risks of an organization and identify risks that need to be treated (Tarantino & Cernauskas, 2011, p.47). In addition, a risk assessment provides strategies and...
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...Risk-Based IT Audit Risk-Based Audit Methodology Apply to Organization’s IT Risk Management Kun Tao (Quincy) Cal Poly Pomona Author Note This paper was prepared for GBA 577 Advanced IS Auditing, taught by Professor Manson. March 2014 Page 1 of 26 Risk-Based IT Audit Table of Contents Abstract .......................................................................................................................................... 3 Introduction .................................................................................................................................... 4 Methodology................................................................................................................................... 6 Risk-based auditing methodology: Risk assessment...................................................................... 6 IT Risk Management................................................................................................................... 7 IT Risk Control Framework........................................................................................................ 8 Identifying assets...................................................................................................................... 13 Determining criticality and confidentiality levels......................................................................14 Threat and vulnerability identification................................................................
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...LLP Principal Contributors Dr. Patchin Curtis Director, Deloitte & Touche LLP Mark Carey Partner, Deloitte & Touche LLP COSO Board Members David L. Landsittel COSO Chair Marie N. Hollein Financial Executives International Douglas F. Prawitt American Accounting Association Chuck E. Landes American Institute of CPAs (AICPA) Richard F. Chambers The Institute of Internal Auditors Sandra Richtermeyer Institute of Management Accountants Preface This project was commissioned by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), which is dedicated to providing thought leadership through the development of comprehensive frameworks and guidance on enterprise risk management, internal control, and fraud deterrence designed to improve organizational performance and governance and to reduce the extent of fraud in organizations. COSO is a private-sector initiative jointly sponsored and funded by the following organizations: American Accounting Association (AAA) American Institute of CPAs (AICPA) Financial Executives International (FEI)...
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...Before hosting an event there are a number of organisation and legal procedures that you have to prepare before you can host your event otherwise you can be liable to be potentially shut down or worse yet sued. In the case of the music tech festival we recently hosted in the City of Bath College on May the 15th we had to prepare a risk assessment for a number of reasons, firstly it is important to identify all the possible risks to attendees, staff and nearby citizens, it is important to do this so that we can reduce risk of injury to anyone involved within the event and it is also helpful to have a risk assessment if in the worst case scenario somebody does get injured you can have precautions to take in order to get them the help they need quickly and efficiently. The aim of the risk assessment process is to remove a hazard or reduce the level of its risk by adding precautions or control measures, as necessary. By doing so, you have created a safer and healthier workplace. A risk assessment is a justified precaution for a various of reasons, risk assessments are very important as they are the backbone of health and safety, they are a very integral part of a advanced occupational health and safety management plan. Risk assessments are a justified precaution with many positive impacts as they help to create awareness of hazard and risks and also identify who may be at risk. For example employees, cleaners visitors, contractors and the public. Risk assessments also determine if...
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...Unit 18: Event Planning M1: Assess the importance of meeting organisational and legal requirements when planning a business event When planning any event in regards to business, it is essential that organisational and legal requirements are met so that the operation runs smoothly and doesn’t encounter any issues from either a legal perspective or within your business team or with other organisations. As we are planning a charitable event, we as a team in our SGS College Business class must be aware of our own actions as well as how we interact with the charities, business sponsors and the college. Furthermore, the team will have to take into consideration legal factors such as risk assessments and taxation. To begin with it could be suggested that meeting legal requirements is very important because if you are not abiding by them, the team and thus the college could be breaking the law. The main area of legal concern is to do with risk assessments. This is because as students will be going out to a remote area for a long walk in aid of charity, the college must ensure the safety of students. Because of this, they will have to walk the route and see if it is safe and then prepare a risk assessment report to elaborate on whether the walk is safe or too dangerous and also if there are any ways in which the college could assist in safeguarding the students, for example by providing mobile phones for communication and a first aid kit in case of injuries. The whole process of undertaking...
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...The Importance of Managing Risk Introduction A variety of academics have provided numerous definitions of risk, with some being centred around a specific business environment and others being a more generic definition of risk. A comprehensive risk definition that is tailored around the business environment can be defined as an event that will likely lead to substantial losses for an organisation, which could also be made more dangerous by the likelihood of the risk event occurring (Harland, et al., 2003). Furthermore, The English Oxford Dictionary defines risk as "A situation involving exposure to danger" or "The possibility that something unpleasant or unwelcome will happen". (Oxford Dictionary, 2015) Kaplan and Garrick (1981, p. 12) provide a simple equation for risk, which is "risk = uncertainty + damage". They believe that it is irrelevant as to what context risk exists in, and that the same equation can always be used to identify and manage risk. However, risk can still be categorised differently depending on what facet of the organisation it is affecting. For example, supply chain risk can be defined as ""the variation in the distribution of possible supply chain outcomes, their likelihood, and their subjective values" (March & Shapira, 1987, p. 1404). This is quite different to other, more generalised definitions of risk. Risk Management Before a risk management strategy can be decided upon, the risk event must first be identified. An organisation should conduct...
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...necessary resources and subject matter experts in the field of business continuity for each of the organization’s operational groups. • Mandate, define, develop, and implement the processes necessary to conduct a comprehensive risk assessment necessary to identify and define the potential risks and vulnerabilities to the decentralized information system infrastructure components, as similarly conducted for the Regional Data Centers, with the further requirements as mandated by HIPAA. • Perform risk management processes for the field level entities and their information system infrastructure, in order to prioritize and rank risks for mitigation purposes. • Conduct Application Impact Assessment (AIA) at field level facilities to identify and measure the effect of information system infrastructure resource loss and escalating losses over time in order to provide the business with reliable data upon which to base decisions concerning risk, hazard and vulnerability mitigation, recovery strategies, and continuity planning, as well as to provide application and data criticality analysis as addressed by the HIPAA Security Rule. • Implement mitigation measures sufficient to reduce risks and vulnerabilities, once risks have been identified and budget justification is possible, and as further required to comply with HIPAA Security Rule requirements. • Develop and implement disaster recovery strategies and plans that provide the necessary...
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...Health and Safety Report By Festus Efosa Efosa INTRODUCTION To run a successful business, the company has to maintain the quality of its products and services as well as the productivity of the business. At the same time, health and safety of its employees are also very essential. The way a company does things is dependent on its management system. Health and safety forms an integral part of any business and holds equal importance as production, marketing, and quality, etc. In fact, health and safety have an impact on these functions, so it should be managed along with these functions. Everyone has the responsibility for health and safety but individuals holding managerial and supervisory positions have additional responsibilities in regards to health and safety so that the company can show its duty to care for employees and the society as a whole. MANAGERS RESPONSIBLITIES FOR HEALTH AND SAFETY IN WORKPLACE Managers and employers handle the management of health and safety according to the law. It is the duty of managers to protect the health and safety of its employees as well as other people who are affected by the business. The Health and Safety at Work etc. Act 1974 (HASAWA), and the Management of Health and Safety at Work Regulation 1999 (MHSWR) lay down some of the main responsibilities and duties of persons at work. It emphasizes and places duties on employees to take precautions of their own health and safety and that of others who may be affected by their “acts...
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...The concept of risk is the probability of an unwanted event which may or may not occur. Risk assessment is the overall process of identifying all the risks to and from an activity and assessing the potential impact of each risk. BBC News website, Radioactive warning on Fife beach read at [1] on 14 May 2006 - Sepa has been carrying out a risk assessment at the bay and now wants a detailed investigation to be carried out. The determination of the potential impact of an individual risk by assessing both the likelihood that it will occur and the impact if it should occur, and then combining the result according to an agreed rule to give a single measure of potential impact. In order to determine the risks, a risk assessment can typically be completed in four basic steps. The four basic steps are: hazard identification, exposure assessment, dose-response assessment, and risk characterization. Hazard identification is the process when scientists examine peer-reviewed studies of effects in humans, and laboratory animals, to determine the types of health problems a chemical can cause. Furthermore in this step there is an evaluation of the nature and strength of the evidence of causation between a chemical and its effect. In exposure assessment, scientists estimate the amount, frequency, and duration of exposure to a chemical. They often use environmental monitoring data and mathematical models to estimate exposures. Scientists also evaluate the route of exposure and any other scenario-specific...
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...Lab 2 - Align Risks, Threats, and Vulnerabilities to COBIT PO9 Risk Mgmt. Controls Part 1 4. Discuss the primary goal of the COBIT v4.1 framework. Provide a basic description of cobit. * The purpose of Control Objectives for Information and related Technology (COBIT) is to provide management and business process owners with an information technology (IT) governance model that helps in delivering value from IT and understanding and managing the risks associated with IT. COBIT helps bridge the gaps amongst business requirements, control needs and technical issues. It is a control model to meet the needs of IT governance and ensure the integrity of information and information systems. 5. Explain the major objective of the Control area (COBIT 4.1 Controls Collaboration link on the left side of the COBIT website) * “The COBIT Controls area within ISACA's Knowledge Center promotes collaboration and sharing of information, solutions and experience among COBIT users.” 6. From the COBIT Domains and Control Objectives section, list each of the types of control objectives and briefly describe them based on the descriptions on the website. * Plan and Organize – “This domain covers strategy and tactics, and concerns the identification of the way IT can best contribute to the achievement of the business objectives. The realization of the strategic vision needs to be planned, communicated and managed for different perspectives. A proper organization as well as technological...
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...49006- Risk Management In Engineering Risk Management Plan * Proposed Darling Harbour Water Feature Prepared by Vipin Appu Parambil Vikraman 11789373 29th March 2015 Executive Summary This report presents the risk assessment and risk treatment plan for the three new water features of Darling Harbour precinct along with the installation of the public realm. This project is a part of the Convention Centre Redevelopment plan and the risk assessment and treatment, is carried out by abiding with the AS/NZS ISO 31000:2009, SA/SNZ HB 436:2013 and IEC/ISO 31010:2009. Firstly, an introduction of the iconic location, Darling Harbour is briefed. The project objectives, scope and boundaries of the new water features installation is explained along with the risk management process adopted for this project. Secondly the context for risk is established inclusive of internal and external context. The stakeholder analysis and communication and consultation stage, explains the various stakeholders of this project and their mode of communication. Thirdly, risk criteria, risk identification, risk analysis and risk evaluation is developed based on the possible risks that may occur with this project. During risk identification potential risks related to the project was generated. The application of risk severity matrix and FEMA analysis were conducted to identify the likelihood and consequence of risks. ALARP principle was used for risk evaluation and identifying possible...
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...Risk-Based Inspection API RECOMMENDED PRACTICE 580 SECOND EDITION, NOVEMBER 2009 --``,,,,,``,,`,``,``,`````````,,-`-`,,`,,`,`,,`--- --``,,,,,``,,`,``,``,`````````,,-`-`,,`,,`,`,,`--- Risk-Based Inspection Downstream Segment --``,,,,,``,,`,``,``,`````````,,-`-`,,`,,`,`,,`--- API RECOMMENDED PRACTICE 580 SECOND EDITION, NOVEMBER 2009 Special Notes API publications necessarily address problems of a general nature. With respect to particular circumstances, local, state, and federal laws and regulations should be reviewed. API is not undertaking to meet the duties of employers, manufacturers, or suppliers to warn and properly train and equip their employees, and others exposed, concerning health and safety risks and precautions, nor undertaking their obligations under local, state, or federal laws. Information concerning safety and health risks and proper precautions with respect to particular materials and conditions should be obtained from the employer, the manufacturer or supplier of that material, or the material safety datasheet. Neither API nor any of API’s employees, subcontractors, consultants, or other assigns make any warranty or representation, either express or implied, with respect to the accuracy, completeness, or utility of the information contained herein, or assume any liability or responsibility for any use, or the results of such use, of any information or process disclosed in this publication, or represent that its used would...
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...HIGH RISK POLICY INTRODUCTION 1 RISK ASSESSMENT 3 RIGHT TO DECLINE 4 EMERGENCY PLANNING - CRISIS MANAGEMENT 4 RESPONSIBILITIES 6 VIOLENCE 13 INTRODUCTION The BBC has special arrangements in place for high risk work. This includes deployments to hostile environments, undertaking activities such as covert filming of dangerous groups, and covering events such as terrorist incidents, natural disasters or pandemic diseases. High Risk is defined more fully below. Definition of High Risk & Travel Advisory terms High Risk is defined as a significantly higher than normal risk of death or serious injury resulting from: • Hostile Environments – a country, region or specified area subject to war, insurrection, civil unrest, terrorism or extreme levels of crime, banditry, lawlessness or public disorder; or areas with extreme climate or terrain. • High Risk Activities - investigations involving covert surveillance or filming and/or confrontation of terrorist, serious criminal, extremist or violent political groups. • High Risk Events -riots, civil disturbance or extreme public disorder, terrorist or armed criminal incidents such as hi-jacking or sieges, any event involving chemical, biological or radiological (CBR) substances, extreme climatic events and natural disasters such as hurricanes, severe floods, earthquakes, volcanic eruptions, etc. or outbreaks of serious diseases and pandemics. Travel Advisory Areas are countries that have specific safety or security...
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...for a maximum benefit with the least amount of risk. Senior management must ensure that all risks have been taken into consideration along with the benefits to the CU and its members, and that the risks and returns are acceptable. Careful consideration must be given to the potential risks of these relationships and how best to manage them in specific regard to the amount of control given to the vendor vs. related risks in a given situation. The length of time ___FCU has worked with a vendor will directly influence the components and depth with which a relationships in which our expectations have been met. Critical Vendor The Board has defined a “Critical Vendor” as a vendor that provides a unique service of high importance to ___FCU that cannot be easily replaced in the event the vendor is no longer able to perform. Planning and Assessment ___FCU will use the Service Provider spreadsheet to document all risk assessments. Critical vendors: There must be planning and an initial risk assessment prior to entering into any new critical vendor relationship. Multiple vendors (at least 2) must be considered. Senior management should review all the information in detail before making its final choice. The initial review should take into consideration at a minimum as applicable, the following risks areas: credit, interest rate, liquidity, transaction, compliance, strategic, and reputation, with the main focus being the risk to membership...
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...HR Management Strategy Plan HRM/420 Human Resource Risk Management May 13, 2013 HR Management Strategy Plan A human resource risk management strategy plan is an integral part of an organization as it helps solve and reduce the problems an organization faces and/or will face. Risk management is managing potential risks that will or have posed a negative threat on a business and/or organization. Managing risk is a work process that not only is used to solve risks as they arise but also to reduce or eliminate future risks. With that said, Baderman Island Resort should have a solid HR risk management strategy plan in place in order to ensure future success for the organization. As we create a complete risk management strategy plan for Baderman Island Resort the following will be included: risk assessment and management program, health and safety programs, succession plan, and crisis contingency plan. The risk assessment and management program for Baderman Island Resort is designed to keep all employees and guests safe, trained and well informed. As for their health and safety program there are two important concerns that need to be addressed as we design the HR risk management strategy plan, these objectives include overall resort safety and promoting wellness. Employee wellness programs are important, as Baderman Island Resort wants to boost morale, improve health and fitness and increase productivity in the workplace. Succession planning is an integral piece of...
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