Risk and Control Self-Assessments Flashcards
what is a RCSA?
IT IS A SYSTEMATIC PROCESS FOR IDENTIFYING AND ASSESSING RISKS AND CONTROLS WITHIN AN ORGANIZATION.
What is the purpose of the RCSA?
Helps in evaluating the effectiveness of risk management practices and control mechanisms
what is the importance of the RCSA?
- Enhances risk awareness and ownership among employees.
- Identifies potential risk exposures and control weaknesses.
- Provides a structured approach for continuous risk management.
- Supports regulatory compliance and risk governance.
what are the components of the RCSA?
- Risk Identification
- Risk Assessment
- Control Identification
- Control Assessment
- Action Plans
what are the exercises as part of the RCSA?
- Key risks exposures review
- An assessment of controls (preventative/detective)
- Estimates of the expected losses
- Estimates of stress shortfalls or stressed losses
- list of further mitigating action plans
what are the benefits of the RCSA?
- Enhanced risk awareness
- Improved Risk management
- regulatory compliance
- informed decision-making
- continuous improvement
what are the different levels of the impact scale?
- extreme
- major
- moderate
- low
what is the role of the heat map?
it combines the likelihood and impact of risks identified and action plans off the back of this can be made
what are the different techniques for risk identification?
- brainstorming
- process mapping
- interviews and surveys
- review of past incidents
what are the different methods of risk assessment?
- qualitative (subjective judgement)
- quantitative (numerical data and statistical models)
- risk matrix
- scenario analysis
what are the different methods of control assessment?
- testing
- self-assessment (by employees)
- audits and reviews
- benchmarking (to industry best practices)
what are the contents of an action plan?
- development of the action plan
- assignment of responsibilities
- follow-up and monitoring
- review and updating of the action plan
