Risk Assessment for Mid-Sized Companies: Tools for Developing a Tailored Approach to Risk Management

Organizations often struggle with the concept of enterprise risk management, or ERM. Addressing risk is a critical element in surviving today’s challenging economic environment. The heart of ERM is the risk assessment process that has evolved from the COSO framework. For the CPA or CFO who is familiar with the COSO standards, Risk Assessment for Mid-Sized Companies transforms those standards into actionable ERM processes.

This toolkit offers practical examples and explanations that lay out a clearly defined framework for approaching enterprise risk management from start to finish. It helps you identify risk at the entity level in small and medium size enterprises, and it allows you to develop a tailored approach to an organization’s risk management requirements.

The toolkit contains a book featuring tightly written strategies and helpful diagrams that translate COSO guidelines into tactical plans, plus a DVD with:

•  A set of Excel worksheets that show how following the ERM tactics will impact quantitative financial measurements

•  A PowerPoint presentation for training staff that are involved in the ERM process

•  A thirty minute video for building awareness among staff

•  A PDF of the book content to use with your ERM steering/working group

Together this approach will allow you to create a solid structure for a risk management process that helps you avoid the internal and external risks that damaged so many organizations in the recent past. You will be able to:

•  Create a common language to define, identify, evaluate, and manage risk

•  Establish and agree on risk tolerances and risk appetite

•  Identify risk management expectations, current gaps, and risk owners

•  Leverage cross-functional expertise to manage risk to within acceptable levels

About the Author:

Scott M. McKay, CPA is employed with Cree, Inc., headquartered in Durham, North Carolina. He is the company’s corporate controller and was previously the director of internal audit responsible for internal assurance, risk advisory and forensic accounting services. Additionally, Scott worked as an Audit Manager with McGladrey & Pullen LLP where he performed audit, assurance and risk advisory services for both public and private companies in a variety of industries.