Administrative Services

STATE ACCOUNTING

State Accounting

Home

About

Contact

FAQs

LINK website

Risk Assessment Technique Considerations

When considering which risk assessment technique would work best for your agency, consider the following:

Your agency, your risk.
  • The final outcome of the risk assessment should be pertinent to your agency, your agency's function, activity, or process.
Many better than fewer.
  • Focus on a wide array of techniques instead of a small sampling. A wider array will give you better insight to the risks your agency faces as different techniques foster different outcomes.
Check the personalities at the door.
  • Open and honest discussion should be promoted whichever technique is used. Subordinates should feel comfortable disclosing a potential weakness in Internal Controls with Managers without the threat of retribution.
Go Team!
  • Assemble an Internal Control team when beginning to evaluate the risks your agency faces. The team should consist of members ranging from all aspects of the organization. Diversity and cross-functional are key words in describing team membership. In small agencies, the team may be 3 or 4 (or fewer) members; larger agencies may have 6-10 (or more) members, depending on the needs of the agency.
Victory!!!
  • A successful evaluation will produce a lengthy list of risks. The key objective for the team is to sift through the risks, determine the difference between a legitimate risk and a mere complaint, and to focus on the "vital few" instead of the "trivial many."