Skip to main content

1.9 Ownership & Accountability

1.9 Ownership & Accountability

 

  • For successful risk management, each risk should have assigned ownership and accountability.

 

  • Risk should be owned by a senior official who has necessary authority and experience to select the appropriate risk response based on analyses and guidance provided by the risk practitioner.

 

  • Risk owners should also own associated controls and ensure the effectiveness and adequacy of the controls.

 

  • Risk should be assigned to an individual employee rather than as a group or a department. Allocating accountability to the department as a whole will circumvent ownership.

 

  •  Accountability for risk management lies with senior management and the board.

 

  • Risk ownership is best established by mapping risk to specific business process owners.

 

  • Details of the risk owner should be documented in the risk register.

 

  • Results of the risk monitoring should be discussed and communicated with the risk owner as they own the risk and are accountable for maintaining the risk within acceptable levels. 


 

Key aspects from CRISC exam perspective

 

CRISC Question

Possible Answer

Best way to assign the risk ownership 

Mapping risk to specific business process owner

Risk ownership is documented in

Risk Register

Accountability for risk ultimately belongs to

  • Board of Director

  • Senior Management

What is the purpose of the audit trail?

To establish accountability

Result of risk monitoring should be mandatorily communicated to

Risk owner

 


Video Tutorials - 1.9 Ownership and Accountability


Flashcards - 1.9 Ownership and Accountability

 

Practice Questions - 1.9 Ownership and Accountability

Popular posts from this blog

1.1 Risk Capacity, Risk Appetite and Risk Tolerance

1.1   Risk Capacity, Appetite and Tolerance First step of any risk management learning is to understand following three important terms: Risk Capacity Risk Tolerance  Risk Appetite  Let us understand the difference between Risk Capacity, Risk Appetite and Risk Tolerance:   Parameter Descriptions Risk Capacity Maximum risk an organization can afford to take. Risk Tolerance Risk tolerance levels are acceptable deviations from risk appetite. They are always lower than risk capacity. Risk Appetite Amount of risk an organization is willing to take.   Let us understand this with an practical example: Mr. A’s total saving is $1000. He wants to invest in equities to earn some income. Being risk conscious, he decides to invest only up to $700.  If the markets are good he is willing to further invest  $50.  Risk Capacity: Total amount available i.e. $1000 RIsk Appetite: His willingness to take risk i.e. $700 Risk Tolerance: Acceptance deviation from risk appetite
Read more

Welcome to first ever Web Book on CRISC (Certified Risk & Information System Control)

We welcome you to access this web book on CRISC (Certified Risk & Information System Control) by ISACA.   Features of this web book are as follow:  This web book is designed on the basis of official resources of ISACA.  Web book is designed specifically for candidates from non-technical background. Topics are arranged segment wise and aligned with latest CRISC Review Manual.  500 + Exam oriented practice questions.  Start your preparation here: Chapter 1   Chapter 2   Chapter 3   Chapter 4   CRISC - Recorded Lectures  We are happy to announce that CRISC lectures is now made available in Udemy in recorded form. You can access them at any time as per your convenience. You will have life time access for the recorded lectures.  Following are the salient features of the lecture: This course is designed on the basis of official resources of ISACA. Course is designed specifically for candidates from non-technical background. Topics are arranged segment wise and aligned with lates
Read more

2.7 Risk Analysis Methodologies

2.7 Risk Analysis Methodologies Risk analysis is the process of ranking of various risk so that areas of high can be prioritized for treating them.   Risk can be measured and ranked by use of any of the following methods:   Quantitative Risk Assessment Qualitative Risk Assessment Semi-quantitative Risk Assessment   Factor that influence the selection for above technique is availability of accurate data for risk assessment. When data source is accurate and reliable, organization will prefer quantitative risk assessment as it will give risk value in some numeric terms like monitory values. Monetary value is easy to evaluate to determine the risk response. Quantitative Risk Assessment In quantitative risk assessment, risk is measured on the basis on numerical values. This helps in cost benefit analysis as risk in monetary term can be easily compared to cost of various risk responses.   In quantitative risk assessment, various statistical methods are us
Read more