Business Risks and Business Processes/Functions
The following matrix maps the risks management has identified as its highest priority enterprise risks to ABC business verticals. The shaded cells represent the business verticals in which processes/functions may be significantly impacted by the associated risk, and at which there is some level of responsibility for related risk mitigation. The numbers in the shaded cells represent projects in the 2011 audit plan (see project listing below) through which we believe we will be able to evaluate the effectiveness of controls in the associated areas that are in place to prevent or detect related risk events.
/ Business Verticals /# / Enterprise Risks / HQ / SSC / Reg X / Reg Y / Reg Z /
1 / Business Interruption Risk / 3, 9,29,Co1 / 3, 8, 9 / 3, 9 / 3, 9 / 3, 9
2 / Industry Risk / 5, 9 / 5, 9 / 5, 9
3 / Reputation Risk / 1, 21, 28, 29, 32 / 4, 20 / 4, 20 / 4, 20 / 4
4 / Efficiency Risk / 4, 10, 11, 12, 16, 17, 27, 29, 30, 26, Co3 / 4, 10, 11, 12, 16, 17, Co2 / 4, 10, 11, 12, 16, 17 / 4, 10, 11, 12, 16, 17 / 6, 11, 12, 31
5 / Competitor Risk / 5, 7, 9, 10, 11, 12, 30 / 5, 7, 9, 10, 11, 12 / 5, 7, 9, 10, 11, 12 / 5, 7, 9, 10, 11, 12 / 5, 7, 9, 10, 11, 12
6 / Health and Safety Risk / 12, 19 / 12, 19 / 12, 19 / 12, 19 / 12, 19
7 / Regulatory Risk / 1, 8, 9, 13, 19, 32 / 1, 8, 9, 13, 19, 32 / 1, 13, 19, 32 / 1, 13, 19, 32 / 1, 13, 19, 32
8 / Compliance (Regulatory and Other) Risk / 1, 9, 13, 16, 20, 19, 28, 29, Co2, Co3 / 1, 9, 13, 16, 20, 19, 28, 29, Co2 / 1, 9, 13, 16, 20, 19, 28, 29, 32, Co2 / 1, 9, 13, 16, 20, 19, 28, 29, 32, Co2 / 9, 13, 16, 20, 19, 28, 29, Co2
9 / Regulatory Reporting Risk / 1, 4, 5, 13, 32
10 / Knowledge Capital Risk / 6, 8, 9 / 6, 8, 9 / 6, 8, 9 / 6, 8, 9 / 6, 8, 9
11 / IT Infrastructure Risk / 8, 9, 10, 14, 20
12 / Customer Satisfaction Risk / 6, 8, 9, 10, 11, 13, 16, 19, 20, 21, 23 / 6, 8, 9, 10, 11, 13, 16, 19, 20, 21, 23 / 6, 8, 9, 10, 11, 13, 16, 19, 20, 21, 23, 32 / 6, 8, 9, 10, 11, 13, 16, 19, 20, 21, 23, 32 / 6, 8, 9, 10, 11, 13, 16, 19, 20, 21, 23, 31
13 / Technological Innovation Risk / 4, 8, 9, 10, 14, 17, 21, 22 / 4, 8, 9, 10, 14, 17, 21, 22
14 / Commodity Pricing Risk / 7, 11, 23 / 7, 11, 14, 22, 23 / 7, 11 / 7, 11 / 7, 11
15 / Contract Commitment Risk / 7 / 7
16 / Leadership Risk / 6, 10, 11, 12 / 6, 10, 11, 12 / 6, 10, 11, 12 / 6, 10, 11, 12 / 6, 10, 11, 12
17 / Pension Fund Risk / 5
18 / Credit Risk / 1
19 / Default Risk / 21, 22, Co1
20 / Performance Gap Risk / 6, 10, 11, 12, Co3 / 6, 10, 11, 12, 14 / 6, 10, 11, 12 / 6, 10, 11, 12 / 6, 10, 11, 12
21 / Change Readiness Risk / 6, 10, 11, 12 / 6, 10, 11, 12, 14 / 6, 10, 11, 12 / 6, 10, 11, 12 / 6, 10, 11, 12
22 / Performance Incentive Risk / 15 / 15
23 / Unauthorized Use Risk / 8, 9, 15, 25, 26 / 8, 9, 15, 25, 26 / 8, 9, 15, 25, 26 / 8, 9, 15, 25, 26 / 8, 9, 15, 25, 26
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