1. Risk Management
Definition, Assessment and Effective Control
Sowate Samson P.I.A

2. Introduction
Define
• Terms
• Roles
• National
Standards
• Regional &
International
Standards
Assess
• Likelihood
• Impact
• Vulnerability
• Action or
Inaction
Control
• Systems
• Compliance
• Accountability
& Transparency
• Communication

3. Define Terms
Risk is
Uncertainty
Non
Compliance
Corruption
& Fraud
Lax
Attitudes
Controls not
Applied

4. Define Terms
Risk
Managed
Compliance
Accountability
& Transparency
Competence
Effective
Controls

5. Define Roles
PS & Audit
Committee
Internal Audit
Unit
Apply Risk
Control
Techniques
Effective Audit
Programme in
Operation
Managers
Control
Systems

6. Define National Standards
• National Internal
Audit Manual
• No Pre Audit
Accountant
General
• Comply with
Manual
• Devise &
Implement Audit
Programme
Internal
Audit Units • Receive Reports
• Agree Remedial
Action Programme
with Managers
and Monitor
PS/Audit
Committee

7. Define Regional & International
Standards
EastAfrica
Regional
Guideline of
Good Practice
International
Comprehensive
Manual Issued
by the Global
Institute of
Internal
Auditors
ISO310002009
The
International
Organisation for
Standardisation
(ISO) 31000 of
2009 relates to
Risk
Management

8. Assess Likelihood
Tests
Developed
Audit Checks
Carried Out
Frequent, Likely
Possible, etc
Likelihood
Assessed

9. Assess Impact
Tests Developed
Audit Checks
Carried Out
Extreme, Major, etc
Impact Assessed

10. Assess Vulnerability
Tests
Developed
Audit Checks
Carried Out
Very
High, High etc
Vulnerability
Assessed

11. Action or Inaction
“There are risks and costs to a program of
action. But they are far less than the
long-range risks and costs of comfortable
inaction.”
– US President John F Kennedy

12. Control
•Financial System Controls
•Operational System Controls
•Walk Through Tests For Effectiveness
•Appraise Reliability & Consistency
•Identify Weaknesses
•Recommend Improvements

13. Control
Compliance
Uganda
Laws &
Regulations
Standards
Good
Practice
Effective
Governance

14. Control
Transparency & Accountability
Access Participation Timeliness

15. Control
Communication
– Top Down
Communication
– Bottom Up

16. Way Forward
 Internal Audit staff augmented and
facilitated;
 Risk Management & Internal Audit
2013/14 Programmes presented to
PS/Audit Committee for
finalisation, adoption and implementation;
 Commence discussions with managers on
risks within their scope of control.

17. Thank you