Risk Management Best Practice 2 – Integrated Risk Assurance Oversight Matrix

Maintaining compliance in today’s highly regulated, rule-driven marketplace requires diligent oversight of the organization’s core processes by the company’s staff. This oversight takes many forms from internal audits, self-assessments, management observations, and quality checkpoints embedded within the processes themselves. These points of oversight, however, may individually fall short from providing fully effective compliance risk assurance. Therefore, deliberate action should be taken to marry these assurance activities into a single cohesive program.[wcm_restrict plans=”49005, 25542, 25653″]

The first step in establishing an integrated risk assurance oversight program is to identify those internal activities providing assessment coverage of the organization’s core processes and programs. Such an assessment matrix relies on the clear identification of core organizational processes typically grouped by function or functional like organization accompanied by a listing of the various internal persons and groups providing deliberate, focused and routine assessment of the effectiveness of the program’s implementation that necessarily includes compliance with government regulations and industry standards. The matrix is further enhanced when additional details of the oversight activities, such as evaluation frequency and specific areas of coverage, are covered. Figure 1 provides an example of one such matrix.



Figure 1: Core Process Risk Assurance Matrix

Final Thought…

While an organization must rely on its own internal or directly contracted resources to provide effective oversight, such oversight activities benefit from the insights provided by governmental regulatory and industry evaluative activities. Therefore, truly best practice risk assurance matrices will also include those external bodies providing oversight to the various core organizational processes with equally detailed frequencies, focus areas, and other such information as is collected and documented for the internal assurance activities. By documenting the external organization oversight mechanisms, internal assessors are provided a clear line-of-sight to other relevant information sources when performing their evaluations. Likewise, business leaders receive a complete portfolio listing of oversight activities their organization will be subjected to.[/wcm_restrict][wcm_nonmember plans=”49005, 25542, 25653″]


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