Auditing and Risk Management (3)
Auditing and risk management is a very critical element of maintaining today's organization. In the ever-changing business environment, encountering risk is inevitable. The ability to manage these increasingly significant risks now represent the difference between a thriving organization and one that is struggling to deal with the challenges facing it.
KCI offers different courses focusing on practical forms of auditing and risk management approaches.
Enterprise Risk Management
In the ever-changing business environment, encountering risk is inevitable. The ability to manage these increasingly significant risks now represents the difference between a thriving organisation and one that is struggling to deal with the challenges facing it. Many businesses have realized that misunderstanding risk can lead to disaster. The organizations that have dealt with the recession most effectively have realized that this requires extensive knowledge of risk management tools and techniques. This is exactly what you will find in this course. As the current worldwide situation demonstrates, poorly informed or improperly executed risk management can mean disaster. Conversely, a well organized and focused risk process and strong risk management team will enable your company to maintain and strengthen your edge over your competitors. Moreover, studies have shown that financial risk is only the ‘tip of the iceberg’, as nearly 80% of key risks are not insurable. This critical 80% of risks must be ‘insured’ internally with a capable risk management team.
Risk management has been catapulted from being a useful tool to becoming the very pulse of the organization and the yardstick by which its management is judged. The key is to recognise that risk is not something that should be avoided – a risk is often an opportunity in disguise.
Duration: 5 days
Fraud – The Invisible Enemy
Would you know if fraud was occurring in your organization? Do you know what the major fraud risks are in your business?
Do you have the use of any automated fraud detection techniques? If fraud is suspected do you have a clearly defined approach for managing the investigation?
If you have answered “NO” to any of the above questions, you are not alone.
Fraud is estimated to have cost the World Economy at least $ 4 days trillion (US) in 2010/11. The average organisation loses $10 per day (US) per employee to fraud and abuse (source association of fraud examiners). The true cost of fraud is much higher when you take into account impact on reputation, diversion of management attention and loss of trust within teams.
Many organisations assume that fraud is not happening in their business, as they have not uncovered any frauds 95% of organisations make no use at all of electronic information to detect fraud (Ernst and Young Study).
Most managers assume that having good controls in place will significantly reduce the risk of fraud – the reality is that as many fraudsters are senior personnel, they will know the controls and how to bypass them (however sophisticated you think they may be).
During the current economic crisis, fraud poses an even greater threat.
Duration: 5 days
Auditing and Risk Management - Auditing of Projects and Contracts
How many projects do you know which have been delivered on time, to budget and fully met the needs of all the parties involved? Not very many, I am sure will be your answer.
Research indicates that in many projects, risks are identified and analyzed in a random, uncoordinated manner. Not only does this result in unexpected risks arising, but the true impact of the risks actually identified are not fully appreciated or the combination effect of the risks are misunderstood.
It has been estimated that a strong risk management process can decrease problems on a project by as much as 80 or 90 percent. In combination with solid project management practices, a good risk management process is critical in cutting down on surprises, or unexpected project risks. Such a process can also help with problem resolution when requirements change, because now those changes are anticipated and actions have already been reviewed and approved, avoiding the need for panic and emergency treatment.
Auditing the project throughout its life from the project development stage to the post implementation review and adopting a risk based approach is a proven way to maximize the opportunity to deliver the project to time, to budget and fully meet the needs of all interested parties.