Internet Tool Will Diagnose Risk Management Controls
Byline: Kit Bingham
An independent risk management consultancy has developed a web-based tool for analysing the effectiveness of companies' risk management and internal controls procedures.Richard Anderson, founder and managing director of the Corporate Risk Group, says: "By asking 30 to 40 questions, we can get a good picture of how a risk culture operates in an organisation."
The online questionnaire, known as Dimensional Control diagnostic, asks how companies seek to manage risk in five principal areas. For example, it looks at whether a company tries to prevent risk, or has plans for minimising the impact of that risk if it materialises. It also looks at which individuals or groups are responsible for managing specific risks.
When the same questions are asked in different parts of a business, such as head office and business unit level, it reveals whether controls are effectively embedded in an organisation or applied only locally.
"If you find you have a different risk culture in different areas of the business, you have a problem. We can help the audit committee and the internal auditors understand how their controls work across the company," says Anderson.
In addition to diagnosing the effectiveness of companies' controls, Anderson's group will also provide consultancy on designing risk management systems and exploiting them to deliver value. …