Emerging Trend of Risk Assessment: A Boon or a Bane?

The revised version of ISO 9001:2015 has ensured a systematic approach to risk assessment. Risks are everywhere, in all systems, processes, projects, and operations. By incorporating risk-based thinking in ISO 9001:2015, even the quality managers got the authority to brainstorm risk management ideas. In this article at Quality Digest, James J. Kline explains how the internal auditors can converge the future audits by evaluating possible risks.

Join the ERM Process

According to the International Federation of Accountants (IFAC) report, the accountants can also join the enterprise risk management (ERM) process. A Gartner Audit Leadership Council report recommends that the auditors must strategize the imminent audits. The IFAC report also identifies ways to turn accountants into a significant part of the organization’s ERM process.

Substantial ERM

Indeed, both reports aim to align and improve an organization’s risk management process. The holistic approach would underline a joint effort to risk mitigation and prioritization of opportunities. Thus, organizations can earn better returns and business values.

The sudden outbreak of the Covid-19 pandemic has encouraged organizations to adjust their operational activities. Remote working and cloud technology usage are the evident transformations that affected cybersecurity and supply chain management. Prolonged isolation, along with the risk of security, has influenced staff productivity and confidence. So, the risk of output shortage and decreased employee engagement are also adding to the woes.

To handle the situation, organizations and risk auditors must initiate smart planning and strategic execution. Be wary of the potential risks and initiate an assessment to curb the evident vulnerabilities. To strengthen the role of auditors in ERM, make necessary arrangements and acquire skills in these categories:

  • Improve your business acumen to meet the ERM needs. Understand the vision, strategy, and operational endeavors of your company.
  • The auditors must gain thorough knowledge and understanding of the ISO 31000 and COSO-ERM.
  • Work on improving statistical skills and data modeling to sustain growth flow.
  • Your ability to communicate with the team is crucial to outgrow emerging competition.
  • Do not hesitate to ask questions and take upon the challenges of transformation.

Click on the following link to read the original article: https://www.qualitydigest.com/inside/management-column/competition-risk-assessment-increases-011321.html

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