The risk management process and the importance role of internal control

Why Internal controls are important

It’s a myth that only medium-sized or large companies need a risk management process. In fact, every company of every size should have internal control frameworks and processes.

Every management board is responsible for appropriate risk management processes and internal controls to be in place at their organization.

They benefit an organization two areas:

  • First, Internal Controls will help an organization avoid costly, time-consuming, and damaging oversights, regulatory compliance issues and risks.
  • Second, they will help operations run efficiently and faster, and consequently increase profits.

The recommended approach to build your internal controls

Naturally, the frameworks will vary in structure and complexity and processes should be tailored for each company’s size and activities.

But every organization needs clear, specific, and appropriate internal control processes. They are there to control any crisis that may arise and ensure operations are smooth and efficient.

Internal control systems should cover 5 activities:

  1. Internal control environment
  2. Risk management
  3. Internal control mechanisms
  4. Informing and communicating
  5. Error monitoring and correction

(Source: Internal Control – Integrated Framework, Committee Sponsoring Organizations of the Treadway Commission, Jersey City, 1992)

Internal controls are a coherent way to support management

We recommend Internal Risk Management (IRM) systems are fully integrated with the rest of the organization.

IRMs are only as good as how they interact with other management systems, so they should never be deployed in a vacuum. They should align closely with other management functions, for instance, organizational planning. IRMs generate clear insights which planning teams can use to improve and adapt their organization’s plans and strategies.

They will also help an organization to be able to quickly adapt to fast changing and sometimes unpredictable market conditions.

Summary

Internal controls help organizations by protecting assets, driving better financial results, and working toward strategic objectives. They can flag and prevent unnecessary effort and reduce operating costs.

Good Internal Controls software platforms such as Adaptive GRC can automate many of the required processes to set up and run a robust IRM.

AdaptiveGRC is a platform that allows you to streamline your risk management processes. The tool offers almost limitless flexibility while remaining straightforward and intuitive to use. Users can tailor the functionality to precisely fulfil almost any organization’s requirements.

Solutions

The AdaptiveGRC platform offers a variety of modules to help manage GRC activities for your company.

In order to meet your company's specific needs, our team of experienced developers can tailor the required functionalities to deliver exactly what your company needs. If your company requires a customized module to effectively meet its needs, we can help.

Let us fit the best solution for your company. Fill out the form below.
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    One of the best GRC software with very good price

    Adaptive GRC offers a great deal of flexibility in supporting GRC&AUDIT processes. The product is continuously developed and the customer receives new possibilities and functionalities. In addition, the price is very attractive in comparison to competitive products. The support team takes a flexible approach to the customer's needs.

    Sebastian B. CEO | Computer & Network Security

    Comprehensive platform for managing risk and compliance

    I used AdaptiveGRC Compliance and Risk Management modules for more than a year. Implementation went smooth, and the support team was always very helpful. I especially value the functionality AdaptiveGRC offers - all GRC processes can be managed in one tool, and there is a single database. The tool helped my organization lower operating costs and gain a better understanding of risks in the organization.

    Marcin K. Chief Information Security Officer | Financial Services

    Perfect program for compliance control

    It is amazing that thanks to AdaptiveGRC individual assessment management can be shortened from days to minutes. The tool can generate reports for different stakeholders containing only their desired assessment outcome data. I appreciate much the possibility of generating compliance specification lists for supplier contracts or internal departments.

    Jasween K. Compliance Pharmaceuticals

    AdaptiveGRC supports insurance companies in their risk and compliance management processes

    I used AdaptiveGRC to 1. support insurance companies' compliance management processes following a complex industry-specific regulation. 2. I also used AdaptiveGRC to support the process of managing and monitoring data processors as GDPR came into effect. I experienced a significant increase in efficiency in both cases.

    Verified Reviewer Insurance | Self-employed

    What's in a name...

    As the name is representative, AdaptiveGRC is a complete, interconnected GRC solution that can be adapted to organizations across industries and size. The AGRC team did a superb job designing and building a best-in-class GRC solution that addresses the challenges faced in today's uncertain and ever-changing global business climate. Working with the AGRC team has been a pleasure and the support they have provided is exceptional.

    D Scott C. Business Development | Biotechnology

    Financial institutions could benefit greatly from AdaptiveGRC

    I am happy to be able to use AdaptiveGRC in my work. This dedicated solution is very helpful for anyone that has to fill out the SREP questionnaire. The extra time I gained was priceless. The platform's design was also very appealing to me. The fact that it was so simple to use was a major plus for me. Due to its comparison capabilities with past years' forms, I was able to cut down on the amount of time it took to complete the new questionnaire. What is more, I was able to monitor the progress of the people assigned to the process.

    Anna C. Head of Fin Crimes Team | Banking

    Great support for inurance company

    My overall experience has been great. I also liked the layout of the platform. The time and control I gained is invaluable. I like the fact that it was very easy to use. It definitely allowed me to shorten the time I had to spend on filling out the SREP questionnaire. I also could easily control the status of work of my team members, check their progress, and monitor on daily basis.

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    AdaptiveGRC - Big Player in GRC

    Easy to install and easy to configure. Out of the box solution. Cloud based or Server. AdaptiveGRC is an enterprise governance, risk management and compliance (eGRC) solution set with unique and unequalled capabilities. AdaptiveGRC can be deployed as one fully interconnected solution suite, or you can choose one or more modules.

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