WPPF Fund Audit Services in Bangladesh
WPPF Audit in Dhaka and Chittagong, Bangladesh

Introduction to FM Associates and FM Consulting International
Corporate Income Tax | Bangladesh
Risk Management Audit Services in Bangladesh | FMCI

WPPF Audit Services in Dhaka and Chittagong, Bangladesh

Risk Management Audit helps an organization performed its objectives through disciplined, systematic approach in order to improve and evaluate the risk management effectiveness. It also refers to the inspection or examination of potential or identifying risks in advance, analyzing them and taking precautionary necessary steps to reduce the risk.

It helps in analysis and identification of relevant risks in order to achieve organization's objectives, for the sake of ascertaining how those risks should be controlled. Risk Management Audit helps an organization by efficiently and effectively manage risk in order to achieve the company’s objectives within a lower level of cost. Auditing is an organizational function that is established by the upper management in the sake of monitoring the organization’s control process and risk management.

Risk Management can helps to stay up to date and ensure compliance in the below ways:

  • Risk management can give context for understanding the project performance for audits.
  • More efficient and cost-effective way of running business
  • Access to more helpful and better quality data in order to make better decisions.
  • The perfect individuals can mediate to relieve an issue before it turns out to be too extreme to even consider doing anything about.
  • It can make situations to all the more likely illuminate what ought to spending plan as far as additional time, asset and cash.
  • It can maintain a focus on the critical outcomes and this prevents problems from being overlooked in the business of the day-to-day work on a project.
The advantages of risk management audit are that the organizations become proactive rather than being purely reactive, preventing the undesired effects and promoting the continual improvements.

Experienced auditors need to adapt the idea of structure, process and language of their organization in order to implement risk management audit.

Every organization need to establish a risk management process.  When the philosophy of risk management is developed well, embraced and understood, the organization is treated as effectively manage and recognized risk. If an entity not established a process of risk management, the auditor shall bring this in the attention of Management for establishing this process. The auditor shall get management direction and also board direction as the role played by the auditor in the case of risk management process.

For all businesses there are risks that exist and need to be identified and addressed in order to prevent or minimize losses. Risk is the threat that an event, action or non-action will adversely affect an organization’s ability to achieve its business objectives and execute its strategies successfully. Risk is measured in terms of consequences and likelihood. Risk management must control identified risks to help the company achieve its performance and profitability targets, prevent loss of resources, ensure reliable financial reporting, and ensure compliance with laws and regulations, avoiding damage to its reputation and other consequences. For all organizations there are dangers that exist and should be recognized and tended to so as to forestall or limit misfortunes. As a major aspect of their Sarbanes-Oxley consistence endeavors or venture chance administration programs, numerous inward reviewers are engaged with preparing process proprietors to survey dangers and assume liability for overseeing inner controls.
FMCI can review the critical control systems and risk management process and can provide the best of this services by expressing the following roles:

  • Assist management in the decision to avoid, share, reduce, mitigate or accept risks.
  • Helps to become a risk champion.
  • By offering proper guidance and education.
  • Promoting risk based controls by providing formal recommendations.
  • Helps to become a center of best practice and research.
  • Whether black swan events are adequately managed or not.
  • Whether applying the highest level of objective assurance to address key risks.
  • Verification of whether insurance policies actually provide the coverage expected.
  • Whether the function is under-resourced and add support to a risk manager's request for additional resources.
  • Whether double handling takes place.
  • Whether unnecessary steps are included.
  • Whether critical steps are missed out or not.
  • Whether operators have not been fully inducted, briefed or trained.
  • Whether vital inspection and test activities have been missed out, or are failing to do what is required of them.