Examples of Risk monitoring processes

Question 1

Examples of risk monitoring processes

Answer 1

Regular review

systems of notification

internal audit functions

employment of compliance monitoring staff

skills assessment and medical examinations to assure competence and fitness to work

Practices and drills

Use of embedded IT ‘intelligent agents’ to monitor risks (eg bad debts, unusual costs of revenue entries

attempts to access restricted files)

Intelligence gathering on occurences elsewhere

Monitoring of the regulatory framework

Question 2

Techniques for dealing with uncertainty

Answer 2

Making prudent estimates

Assessing the best and worst possible outcomes

Using sensitivity analysis

Question 3

Sensitivity analysis: Break even output

Answer 3

contribution per unit

Question 4

Sensitivity analysis: Margin of safety

Answer 4

planned sales

Question 5

Sensitivity analysis: Target profit

Answer 5

contribution per unit