US Office of Management and Budget is releasing Enterprise Risk Management update to Circular A – 123 on July 15, 2016.
The new policy document is known as ‘Management’s Responsibility for Enterprise Risk Management and Internal Controls.’ The policy document requires an enterprise risk management program with operational risk controls. The policy document is a game changer. Continue reading
The idea of supply chain risk management has been around for about 10 years. It is only in the last 5 years, that it has become popular. We are still at the early stage of supply chain risk management adoption and deployment.
In terms of total dollar amount, external suppliers provide a significant portion of a manufacturer’s product. For U.S. firms, 50% to 80% or more of the final price of a product can be the cost of purchased goods. In Japan, it can be even higher.
For these reasons, any supply disruption can kill a supply chain. As a result, supply chain risk management is now critical to a company’s competitiveness.
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Value Added Auditing(VAA) is risk based auditing. Or another way to think about it is VAA is analytical auditing where the sponsor and auditee get valuable information to improve their operations and become more competitive.
So, what can VAA do for you?
Value added auditing facilitates the company’s and its supplier’s improvement. For example, the auditor may determine if controls or systems are in place ensuring that: Continue reading
In the US, there are a number of Enterprise Risk Management (ERM) developments:
The President of the US has emphasized:“the importance of having appropriate risk management processes and systems to identify challenges early, to bring them to the attention of Agency leadership, and to develop solutions.”
The President’s Executive Office (Office of Management and Budget) is updating Circular A – 123 to ensure Federal executives and managers are effectively, efficiently, and economically managing risks that inhibit the agency from achieving its strategic and operational objectives.