Top-Down, Risk-Based Monitoring

Risk has always been a heightened topic of interest for companies, and the recent fiscal crisis has magnified the spotlight on this important topic. Specifically:

• What is the board's role?
• Is management diligent in disclosing known risks with the board and regulatory stakeholders?
• Does management adequately identify possible risks that were either reasonably possible or probable to occur?
• Who is accountability for risk assessment?
• What controls exist to help ensure that risks are adequately dealt with?

This training takes attendees through a comprehensive approach towards identifying risks and dealing with them in a cost-beneficial manner. Specifically, we offer practical guidance consistent with the top-down, risk-based approach that the SEC and PCAOB advocate through their rules, standards, and guidance. The 'top-down' approach is consistent with fully grasping entity-level control factors per COSO's Internal Control – Integrated Framework of:

• Integrity & ethical values
• Commitment to competence
• Management's philosophy or operating style
• Organizational structure
• Assignment of authority & responsibility
• HR policies & practices
• Board of directors & audit committee

A 'risk-based' approach is simply aligning your resources where the greatest risks rest in meeting a company's operational, financial and compliance objectives. Real life pitfalls will be shared in an effort for companies to learn from the mistakes of others. Take advantage of this training to move from a crisis management culture to one of crisis avoidance.