Risk Assessment

10.2.3.2 - Risk Assessment (Rev. 308, Issued: 10-26-18 Effective: 09- 01- 18, Implementation: 11-27-18) Every organization faces a variety of risks from external and internal sources that must be assessed. A precondition to risk assessment is establishment of control objectives, linked at different levels and internally consistent. Risk assessment is the identification and analysis of relevant risks to the achievement of established objectives. A key factor in the consideration of an internal control structure is the importance and risk associated with a program and its associated cost effectiveness. When determining whether a particular control objective should be established, the risk of failure and the potential affect must be considered along with the cost of establishing the control. End Section 10.2.3.2 – Risk Assessment: Back to Table of Contents