The Importance of Control Activities for Your Enterprise Risk Management
Risk management protocols are proof of a company’s current operational status and its commitment to effective risk management and compliance. Consequently, regulators and stakeholders are increasing their scrutiny of these protocols. How can you sustain the life of your organization under such pressure?
There’s a common perception that these protocols — policies, procedures and processes — are only static reference materials. This underestimates enterprise risk management’s importance for organizational health as these protocols actually ensure that an organization’s risk responses are carried out.
Understanding the Nuances
Policies contain high-level principles or requirements. They are formally agreed upon by management and dictate direction for individual departments.
Procedures are affiliated with specific policies and describe how policies are to be executed on a day-to-day basis. This ensures alignment with regulatory requirements and strategic goals, like minimizing risk. Procedures also define processes; though a single process may consist of several procedures. These include daily, weekly or quarterly management functions and job activities across the organization.
Processes are the activities and functions that take an input, or multiple inputs, and generate an output. They are the narrative of how things get done in a company. Processes can be large or small and may span multiple departments and groups. Processes are often placed into categories like operational processes, management processes, IT processes, administrative processes, etc. It is the responsibility of everyone within their work activity to maintain these processes. Organizations need to understand the overall level of risk embedded within their processes to ensure the health of their business.
Procipient® Provides Clarity
Organizations seeking enterprise risk controls that effectively mitigate risk need to ensure the proper protocols are in place. Are risk management practices followed enterprise-wide? Are policies, procedures and processes understood and used in daily operations?
The best way to measure control activities and keep them consistent is with Procipient®. This user-friendly, next-generation enterprise risk management software has configurable enterprise risk templates that simplify risk assessments for processes, procedures and policies.
Flexible evaluation frameworks allow you to assess the organization from any perspective. They evaluate the risk created by your organization’s processes, how well the controls that are built into policies and procedures mitigate those risks and provide simple, understandable residual risk scores. This intuitive scoring methodology makes it easy to identify problem areas, isolate weaknesses and prioritize issues.
It also manages all aspects of enterprise risk. This includes policies, procedures and enterprise documentation to meet your regulatory, legal and compliance requirements. Policies and controls can be linked to federal and state laws, guidelines and compliance requirements.
With Procipient®’s simple and intuitive design and functionality, you can survey your risk landscape across departments and process boundaries. This helps create a structure that keeps your business on track.
An established and carefully-defined program makes enterprise risk easy. Procipient® makes enterprise risk management even easier.
Request a demo today to see how Procipient® quickly and easily builds multiple frameworks to assess different aspects of your enterprise.
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