Risk management process

The risk management process is linked to the business planning and assurance process, including internal audit and compliance.

An effective risk management process can help to drive and inform the business and operational planning processes by ensuring that significant risks are considered and addressed in the organisation's business and operational plan.

Consideration should be given to:
  • The appropriate level of interaction between risk management and internal audit. This could take the form of a 'feedback loop' to help provide the following:
    • Risk management helping to drive the audit planning process to ensure significant risks and controls are given priority in internal audit plans.
    • Internal audit feeding back findings on risks and controls to aid the risk management process in updating and improving ineffective controls.
  • Ensuring regular and appropriate communications between the risk management and business plannning and assurance functions.
  • The independence of risk management and internal audit, where these two functions are combined.
Last updated on 09 May 2007