Risk Control Self-Assessment
- Risk Control Self-Assessment is a process of identifying risks in an organization. The RCSA reports are used to identify, manage, and mitigate risks in an organization. Each business units within the organizations are required to assess their risks separately and submit them to risk manager. The four significant risks in an organization are an inconsistent assessment of risks across various business units, non-standardized controls which leads to overlapping of duties and confusion among the employees during risk evaluation and compilation, disorganized and decentralized approach towards risk assessment leading to additional efforts and duplicate controls, the considerable time required to collect and compile the report due to which the data becomes outdated or invalid by the time the report is compiled and is ready for presentation. Since it is not feasible to automate the entire risk detection procedures, managers need to identify and evaluate the risks based on their intensity and evaluate them based on various factors.
- Risk Control Self-Assessment is the process by which companies identify and evaluate the risks associated with them. RCSA is a manual process, and risk managers need to collect reports from business units within the organization to assess the risks. The conduction of the RCSA process takes up a significant amount of time because the entire process is not automated, and the risks need to be evaluated based on their intensity. Since RCSA requires every business unit to conduct risk analysis separately, the same risk can be identified and rated differently by different groups. Due to non-centralized risk management protocols, different units might end up reporting the same risk identifying them with different terms. This may create confusion during the risk assessment and compilation of the risk report. Since the time taken to compile the report is more extended, some of the contained risk assessment data may no longer be relevant to the cause.