Answer to Question #264480 in Electrical Engineering for jalil Ahmed

Question

Explain why it is important to an organisation to carry out all part of a risk assessment in a suitable manner. You should illustrate your answer with specific examples of regulations that contain a requirement for risk assessments to be carried out. 

Answer 1

From the successful risk management and compliance point of view, the audit is defined as the checking of procedures are being followed as per laid down or defined in quality management system. For successful risk management system, the system procedures define the certain set of guidelines or steps in order to deal with a problem or risk, and a systematic approach is followed to arrive at a decision. The systematic approach is the the basically guidelines. During the audit process, a case study is choosen and way the the problem is dealt using the guidelines is scrutinised. The same methodology follow other random cases as well. This way a system is audited for its compliance to the standard guidelines. If deviation is identified, it is termed as non-conformity and a report is generated to overcome the issue/non-conformity.

 

Assessment is the methodology that analyses the effect of risk factors and their calculation in the risk handling mechanism. A buffer is reserved in order to afford the risk if arises so as to smoothly deal with the risk. Risks limits are also analyzed for their relevancy at appropriate time of interval and frequency of occurrence.

 

Internal Auditors: are the auditors trained within the organizations and they use to audit the different processes within the set of guidelines. Normally internal auditors are the cross auditors i.e. if auditor-1 audits the deptt.-2 and auditor-2 audits the deptt.-1. This increases the efficiency of audits and correct way of auditing.

 

External Auditors: are the auditors -from outside the organization and are normally from standard body that is expert in the kind of work. They fix the frequency of external audits and checks the internal audit process and report and based on the same, the relevant conclusion is drawn.