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Identification the management risk:
The first and most essential aspect of risk management is recognising what events may occur within a business. It is only when all the possible events are identified that an assessment of the risk attaching to them can be properly made.
In attempting to identify all the possible events that could occur within a business it is important to engage the assistance of all available staff to brainstorm all the possibilities.
Once all the events are identified, the process begins to establish probabilities vs. effect for each one.
What is Control risk That material misstatement could take place and not be detected, or prevented on a timely basis, by accounting and internal control systems. All audits
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