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ComponentsQ3. What role does risk analysis have with respect to reporting?Every report received (and every major new initiative or significant change implemented by the organization) must be subject to a formal, documented risk analysis, which may lead to either a decision to accept the risk, or to take action to eliminate, reduce or mitigate the risk. The elimination or reduction of the risk involves the identification of the root cause of the problem, together with its contributing factors. Proper documentation is essential to permit follow up, and also to identify trends. The latter is particularly important in those cases where it is decided to accept a risk. While such a decision may well be appropriate in response to an isolated incident, if that incident were later found to be part of a trend, the decision may have to be re-assessed. |
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