Risk Advisory Services in Dubai - UAE
A risk is described as an event or occurrence that, if left unnoticed and unaddressed, might prevent an organization from achieving its goals or objectives in internal audit and risk advisory services UAE. As one of the leading internal audit companies in the UAE, HLB HAMT’s risk advisory team includes a team of professionals who help organizations in several areas of risk advisory services in Dubai. Businesses around the globe recognize risk as a source of competitive advantage. Organizations can unlock their full potential by better understanding and managing risk, producing and safeguarding value for all of their stakeholders.
Risks are categorized in most businesses as Strategic, Operational, Financial, and Compliance Risks.
The risk that an organization faces as a result of poor business decisions is known as a strategic risk. Strategic risk is frequently a key component in assessing a company’s worth, especially when the company’s value drops dramatically in a short period of time. It is a leading factor in modern risk management because of this and its impact on compliance risk.
The risks that a firm encounters in the process of performing its everyday business operations, procedures, and systems are referred to as operational risk. It is largely reliant on human factors, such as errors or failures caused by a company’s workers’ actions or decisions.
The possibility that a company’s cash flow may be insufficient to satisfy its obligations—that is, its loan repayments and other debts, is referred to as financial risk. It can happen as a result of management decisions, particularly those made by corporate financial experts, as well as the performance of the firm’s products.
An organization’s potential exposure to legal penalties, financial forfeiture, and material loss as a result of failing to operate in line with industry rules and regulations, internal policies, or recommended best practices is known as compliance risk.
Risk is an inherent part of doing business. However, with the assistance of the top-risk consulting services, it can always be handled. Organizations may also efficiently handle market changes, tough consumer expectations, and the ever-increasing scrutiny from regulatory organizations and other government agencies with the proper Risk Management Strategies in place.
HLB HAMT, a top risk advisory services firm in UAE, can assist your company in better risk management. Our industry-leading teams can advise you on how to incorporate risk into decision-making and transform interruptions into business opportunities. We follow a well-documented, systematic and sequential approach in our risk assessment and advisory services.
- Understanding the OrganizationWe will collaborate with the management to understand your business, mission, objectives and your operation in all its complexity. This requires analyzing the external and organizational environment and the risk management environment, in which risks can be identified, analyzed and minimized.
This analysis will cover the entity as a whole or the individual processes. The context will be agreed upon before initiating the risk management process, so as to assist in the development of the assessment standards and the risk analysis framework.
- Identify RisksIdentify what, why, and how events can arise, within the subject entity, and which can prevent, minimize, or delay achieving objectives. Good quality information is important in identifying risks. The starting point for risk identification may be historical information about the entity followed by discussions with a wide range of stakeholders about historical, current and evolving issues.
- Analyze RisksRisk analysis revolves around developing an understanding of the risk. It provides input into decisions on whether risks need to be treated and subsequently the most appropriate and cost-effective treatment strategies. Risk analysis involves the consideration of the sources of risk, their positive and negative consequences and the likelihood that those consequences may occur. Factors that affect consequences and likelihood may be identified. Risk is analyzed by combining consequences/impacts and their likelihood.
- Evaluate RisksCompare estimated levels of risk against risk criteria to provide a basis for management to identify risk management priorities. If the levels of risk are assessed as low, then risks may fall into acceptable tolerance levels and no further treatment may be required.
- Treat RisksAccept and monitor low priority risks. For other risks identified, develop and implement specific management plans, including the resources allocated to mitigate the risks to an acceptable level. There are several forms of risk treatment such as avoidance, transfer, or reduction to an acceptable level after taking into consideration the cost versus benefit of the risk treatment.
- Communicate & ConsultThe existence of each risk will be confirmed by management through a direct discussion or an arranged review. Management may disagree that a risk exists because controls are in place to prevent the risk from arising.
Our consultants work with clients either on an assignment basis or on a long-term retainership model, depending on specific needs.
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