Comprehensive Risk Audit Report: Analysis and Recommendations

This document presents a risk audit report, evaluating financial and Work Health and Safety (WHS) risks and the effectiveness of implemented control measures. The audit template includes descriptions of risk controls, objectives, targets, measures, and results related to liquidity risk, over-budgeting, chemical exposure, and fire hazards. The report highlights successful results, such as mitigating financial and WHS risks through regular cash flow forecasting and maintaining safe work practices, and unsuccessful results, such as the high cost and time consumption of conducting the audit. Recommendations for continuous improvement include setting KPIs for monitoring tasks, learning from past mistakes, and focusing on positive responses to risk by accurately defining, estimating, and prioritizing risks to improve decision-making and risk mitigation plan deployment. Desklib provides this and other solved assignments for students.

Risk Audit Report
Section (a): Audit template
Risk
description
Financial
Control/s
implemented
Objectives/
targets
Measures Results
Risk 1:
<Liquidity
risk >
Control 1:
< forecasting
the cash flow
on regular
basis>
To meet the debt
obligation in a
certain time.
If the debt is
completely paid.
Company will
become
financially
independent to
make
investment
To measure and
optimize the net
working capital for
mitigating the
liquidity risk
To calculate the
net working
capital as by
eliminating the
current assets
from the current
debt.
Firm will be
more confident
to mitigate all
their financial
risk
To control the
overhead
expenses to
overcome the
challenge of
liquidity
By dividing the
indirect cost by
the direct
It helps the
company in
their
competition
with the
business
rivalries
Risk 2:
< over
budgeting
>
Control 1:
< calculating
the variances >
To improve the
financial
performance
When Company
will be able to
freely invest on
the other projects
Company can
produce the
better results in
their market
field
To enhance the
business
investment
capacity
Business is able
to invest in
foreign projects
To think of
expansion and
build in other
country
To bench mark the
sources for
measuring the
financial expenses
To compare the
performance with
other business
Better market
position and
large market
share
Risk Control/s Objectives/targets Measures Results
Student Name
©2020 The College for Adult Learning TOID 22228 Page 1 of 3

descriptio
n
WHS
implemented
Risk 1:
<
Chemical
exposure>
Control 1:
<General
dilution
ventilation >
To minimize the
life threatening
risk
Everyone is safe Helps in
reducing the
chances of
injury
To introduce the
trainings for staff
in dealing with
the chemicals
Efficient in
dealing with
chemical
sources
Everyone will
be prepare in
mitigating
such risk and
no one will get
injury from this
hazard
To implement
some strategies
to stop the
exposure of
chemicals
No such hazard
takes place at
work
To make the
business
productive
Risk 2:
< Fire
hazard>
Control 1:
< Keep the
combustible
sources away
from the ignition
sources >
To train the
employee as how
to use fire
extinguisher if
they seen little
fire
No fire hazard at
work place
Everyone
would be safe
To keep the work
areas clean and
free from any fuel
or chemical
No combustible
sources are
exposure to fire
Company’s
infrastructure
will be safe
To maintain the
fire alarming
equipment that
can be used in
hazardous
situation
No likelihood of
fire found from
any equipment
No effect on
financial asset
as no fire
hazard will be
found.
Section (b): Review and evaluation
Audit results
Successful results:
Student Name
©2020 The College for Adult Learning TOID 22228 Page 2 of 3

Major factor which plays an successful role, as with this audit easily financial and work
health and safety risks can be mitigated. Also with this firm can easily proceed with the
strategies as to keep away the combustible sources from the ignite sources and to use the
net working capital for mitigating the liquidity risk. Thus with the help of Audit organization
can easily mitigate all their other risks as well for the business productivity.
Unsuccessful results:
It can be said that conducting the audit is profitable but the resources which are used
costs more, also it impact the financial capacity of the organization. Also this process is
time consuming, as it usually takes more time for analyze and placing the resources at
right place.
Continuous improvement recommendations to risk management
Recommendation 1:
Company can proceed to set certain measures for every task and to use KPI for
monitoring the services. By analyzing they will be benefited to know the likelihood of any
risk. It will guide in making the mitigating strategies. It is also recommended to learn from
the mistakes as to note down every aspect of the risk so that it can be used in future to
mitigate such risks.
Recommendation 2:
To not only focus on the downside of the risk it is important to response positive. It is
recommended to define the risk accurately in a string to differentiating between the
causes and effects. Estimate and then prioritize the risk it will guide in making decision as
well as in deploying the risk mitigating plan.
Student Name
©2020 The College for Adult Learning TOID 22228 Page 3 of 3