Risk Assessment
Office of the Controller
July 23, 2004
Today’s Agenda
• Risk Assessment Framework
• Where Can Risk Occur?
• Department Concerns
• Campus Processes
• Scenario
Framework for
Management of Risk
Understand
Objectives
Understand
Risks
Manage
Risks
What are you
trying to
accomplish?
What gets in
your way of
achieving your
objectives?
What are you
doing to
manage this?
Where the
efforts are
focused
Challenges or
obstacles that
could impact
your
objectives
Current
control
activities to
manage risk
Achieve
Acceptable
Level of
Exposure
What is your
level of
exposure?
Finding the
right balance
of controls
Discussion Item #1
Objective: Doing a successful presentation.
• What are the risks?
Risk Assessment Components
• Objectives
• Risks
• Managing Risk
• Evaluating Risk
• Improvement Opportunities
• Monitoring
Where Can Risk Occur?
Measurement
&
Information
Processes
&
Systems
Risks
Financial
Objectives
People
Risks
Environment
Risks
Materials,
Facilities,
Equipment
People Risks
• Ethics, culture, values, tone at the top
• Training
• Safety and security
Environment Risks
• Legal
• Suppliers
• Natural
• Political
• Competition
Measurement and
Information Risks
• Timeliness / reliability / accuracy
• Security
• How we assess results
• Availability / relevance
Processes and Systems Risks
• Policies and procedures
• The way we conduct business
• Security access
• System design
Materials, Facilities, and
Equipment Risks
• Quality, cost, delivery, and
development
• Availability
• Technology / Obsolescence
• Energy Consumption
Department Concerns
• Where is risk likely to occur?
• What concerns do I have? Why?
• How are those concerns managed?
Discussion Item #2
Objective: Proper handling of cash.
• Risks:
Inadequate training
Lack of adequate safeguards
Lack of individual accountability
Lack of separation of duties
• What are the consequences?
• What are the controls in place?
Voting
• Is the current process acceptable,
acceptable with exposure, or
unacceptable?
Next Steps
• For those processes determined to be
Unacceptable, determine Improvement
Opportunities
• Establish a timeline
• Monitoring
Campus Processes:
Are There Risks?
• Form 5s
• Payroll
• Travel
• Purchasing
• Cash
Scenarios
Perform a risk assessment using one of
the following objectives:
• Ensure employees are paid timely
and accurately.
• Ensure Form 5s are processed
according to policy.
• Ensure equipment purchases are
done according to policy..
Scenarios
Perform a risk assessment using one of
the following objectives:
• Ensure purchases using the LVPA are
done according to policy.
• Ensure data integrity of financial
information.
• Ensure travel vouchers are processed
according to policy.
Questions?
THANK YOU!