Risk management and threats in organizations
- Risk management in organizations is one of the important ways of handling unforeseen risks and ensuring safety. Modern risk management standards are better than traditional ones. Nevertheless, the process is the same. At first, risk should be identified and then assessed. Risk monitoring should be done effectively. Several frameworks are associated with Enterprise Risk Management. One of the frameworks is COSCO. It has been developed to monitor financial risks in an organization. Fraud deterrence as well as internal controls is done so that organizational efficiency can be enhanced. COSCO guidelines should be followed in order to assess risks effectively. It is important to employ a combination of quantitative and qualitative methods of risk assessment so that actions can be taken on time. A class discussion regarding this framework is useful because everyone should be aware of the detection and prevention controls outlined in COSCO guidelines. Risk responses can be done effectively.
- Organizations are vulnerable to various types of threats. Issues might occur while managing stakeholder expectations, customer needs, product designs and services. Hence, the need of a proper risk management strategy or framework is paramount. One of the risk management frameworks useful in an organization is the GAO framework. Using the guidelines entailed in GAO, it is possible to detect and prevent threats in an organization. It emphasizes on organizational structure as well as environmental factors. Mitigating the fraud-related risks can be a possibility using the GAO framework. Organizations should also focus on the necessity of feedback monitoring according to the GAO guideline. The anti-fraud controls have been devised so that the leading fraudulent practices can be mitigated as soon as they are identified. The risk-centric approach used by GAO is purely outcome-based. Private as well as public organizations irrespective of its structure, size and functions can easily implement the framework.