The basis of risk management: Risk Assessment

Risk assessment is the process of identifying and analyzing risks that affect the company's goals, and is the basis of risk management. In risk assessment, risks that impede the achievement of objectives should be identified and analyzed.

1Identifies risks that affect enterprise goals and develops corresponding control measures for these risks.

2) Describe the business process:Sort out the business of the enterprise to determine the directory of all the processes of the enterprise. Describe the business according to the business process standards and templates determined by the enterprise, and use the Process Catalog and flowchart to intuitively describe the business.

3) Determine important accounting subjects and disclosure items:ComplianceImplementation of standards formulated by enterprises.

4Determine important business processes: determine important business processes based on the enterprise's critical risks and key controls.

5Risk Assessment for business processes: Prepare a key control table of the enterprise based on the criteria determined by the enterprise.

6) Identification of financial statements: confirms and records the identification of financial statements related to important accounting subjects and disclosure items according to the criteria determined by the enterprise.

7Determine important business units: determine important business units according to the enterprise classification standards.

8 ) establishes a risk assessment management system: based on the enterprise risk identification and risk assessment methods, determine risk categories related to financial reports and conduct risk analysis on all businesses, establish a business process risk database, and intuitively describe businesses using the Business Process Catalog and flowchart.