Monday, 17 June

MoFA Chief Internal Auditor highlights key tools for organizational risk management

Mr Isaac Adjin Bonney

In the face of an increasingly dynamic business environment, organizations are under constant pressure to manage risks that can threaten their operations, financial stability, and reputation. 

Chartered Accountant and Certified Financial Investigator, Isaac Adjin Bonney, has emphasized the critical role of effective risk management tools in a recently delivered paper on the International Internal Audit Awareness Month organized by the Ministry of Food and Agriculture(MoFA) on the theme: ‘’Beyond Boundaries: Adding Value to MoFA’’. 

His insights focus on the significance of maintaining a robust risk register and the value of an Audit Risk Control Schedule in mitigating organizational risks.

The Risk Register also the Chief Internal Auditor of MoFA, Mr Bonney explains, is indispensable for organizations as it serves as a central repository for all identified risks.

‘’This centralized documentation ensures comprehensive visibility and facilitates better communication among stakeholders, enabling coordinated risk management efforts.

 By systematically identifying and assessing risks across various departments, organizations can prioritize their mitigation efforts effectively’ he said.

An effective Risk Register also supports ongoing monitoring and regular updates, ensuring that new risks are identified and existing ones are reassessed based on changing circumstances.

Mr  Bonney further highlighted that assigning ownership for each risk fosters accountability and ensures active management, preventing risks from being ignored or overlooked.

To further enhance risk mitigation, Mr Bonney advocates for the implementation of an Audit Risk Control Schedule.

 This detailed plan outlines specific controls and audit activities designed to manage identified risks. 

By including control objectives, responsible parties, timelines, and audit frequencies, the schedule provides a structured approach to risk management.

‘’The Audit Risk Control Schedule plays a crucial role in proactive risk management by identifying weaknesses in existing controls through regular audits. 

This proactive approach allows organizations to address control deficiencies before they escalate, thereby reducing the likelihood and impact of risks. 

Additionally, the schedule helps ensure compliance with regulatory requirements, supporting good governance practices and enhancing the organization’s reputation.

Mr Bonney emphasizes that the feedback loop created by regular audits fosters continuous improvement in risk management practices. 

By adapting strategies based on audit findings and evolving risks, organizations can maintain effective and up-to-date risk management frameworks.

In his conclusion, Mr Bonney underscores that effective risk management is vital for the success and sustainability of any organization. 

He asserts that a well-maintained Risk Register, coupled with a comprehensive Audit Risk Control Schedule, enhances an organization’s ability to mitigate risks, ensure compliance, and achieve strategic objectives

Source: Mensah