manage risk
RISK ANALYSIS AND MANAGEMENT PLAN
1. A) Likelihood: Once risks are identified, the next step is to determine the likelihood that the potential vulnerability can be exploited. Several factors need to be considered when determining this likelihood. First, the auditor needs to consider the source of the threat, the motivation behind the threat, and the capability of the source. Next, auditors need to determine the nature of the vulnerability and, finally, the existence and effectiveness of current controls to deter or mitigate the vulnerability. The likelihood that a potential vulnerability could be exploited can be described as high, medium, or low. Rare risk means that highly unlikely, but it may occur in exceptional circumstances. It could happen, but probably never will.
Unlikely risk means that not expected, but there's a slight possibility it may occur at some time.
Possible risk means that the event might occur at some time as there is a history of casual occurrence at the University &/or similar institutions.
Likely risk means that there is a strong possibility the event will occur as there is a history of frequent occurrence at the University &/or similar institutions.
Frequent risk means that very likely. The event is expected to occur in most circumstances as there is a history of regular occurrence at the University &/or similar institutions/Organizations.
According to the Case Study, there are:
i. Banking Risk – There is possibility of theft of cash that is left on premises as the banking in Café was not done every day and often $4000 was kept on the premises overnight in the cash register. It is a possible risk. ii. Manager’s Travel Risk – It is an unlikely risk that the manager would involve in an accident in spite of being a competent driver because of the steep narrow climb up the range with trucks blocking the way that is quite difficult in daylight hours. iii. By-law Compliance Risk – It is an unlikely risk that if the employees or the
1. A) Likelihood: Once risks are identified, the next step is to determine the likelihood that the potential vulnerability can be exploited. Several factors need to be considered when determining this likelihood. First, the auditor needs to consider the source of the threat, the motivation behind the threat, and the capability of the source. Next, auditors need to determine the nature of the vulnerability and, finally, the existence and effectiveness of current controls to deter or mitigate the vulnerability. The likelihood that a potential vulnerability could be exploited can be described as high, medium, or low. Rare risk means that highly unlikely, but it may occur in exceptional circumstances. It could happen, but probably never will.
Unlikely risk means that not expected, but there's a slight possibility it may occur at some time.
Possible risk means that the event might occur at some time as there is a history of casual occurrence at the University &/or similar institutions.
Likely risk means that there is a strong possibility the event will occur as there is a history of frequent occurrence at the University &/or similar institutions.
Frequent risk means that very likely. The event is expected to occur in most circumstances as there is a history of regular occurrence at the University &/or similar institutions/Organizations.
According to the Case Study, there are:
i. Banking Risk – There is possibility of theft of cash that is left on premises as the banking in Café was not done every day and often $4000 was kept on the premises overnight in the cash register. It is a possible risk. ii. Manager’s Travel Risk – It is an unlikely risk that the manager would involve in an accident in spite of being a competent driver because of the steep narrow climb up the range with trucks blocking the way that is quite difficult in daylight hours. iii. By-law Compliance Risk – It is an unlikely risk that if the employees or the