1. LACK OF QUALIFIED AND COMPETENT INTERNAL AUDIT STAFF. - 2. COMPLEXITY OF SYSTEM INFRASTRUCTURE.
3. LACK OF OWNERSHIP ON THE CONTROLS AND RELATED RISKS BY THE MANAGEMENT / OWNERS OF THE COMMERCIAL PROCESSES.
business-risk-management-presentation4. FRAGMENTED AND INCOMPLETE DATA STRUCTURES
5. LACK OF ADEQUATE TECHNOLOGY TO ASSIST TESTS OF INTERNAL CONTROLS
WHAT IS RISK?
OPPORTUNITY AND REWARD?
…. THEY GO HAND IN HAND WHEN WE UNDERSTAND THE RISKS AND KNOW OUR CAPABILITIES.
OPERATIONAL RISK IS THE RISK OF DIRECT OR INDIRECT LOSSES RESULTING FROM IMPROPER INTERNAL PROCESSES OR FAILURES IN THEMSELVES, HUMAN FAILURES, SYSTEMS AND AS A RESULT OF EXTERNAL EVENTS.
FOR THERE TO BE A RISK, THREE
ELEMENTS MUST BE PRESENT:
- THE POSSIBILITY OF SOMETHING TO HAPPEN: AN EVENT; THAT SUCH EVENT CONTAINS SOME UNCERTAINTY, AND THE EXPECT OF A RESULT BY AN OPERATION, ACTION, ACTIVITY, COST, OR INVESTMENT.
IN THIS SENSE WE WILL UNDERSTAND BY RISK, THE PROBABILITY OF A BREACH, LOSS OR A LESS PROFIT TO THE EXPECTED IN THE ACHIEVEMENT OF GOALS, OBJECTIVES, TRANSACTIONS OR OF AN INVESTMENT.
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