Risk management is the identification, evaluation, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.
Risks can come from various sources including uncertainty in financial markets, threats from project failures (at any phase in design, development, production, or sustainment life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause.
Risk Assurance covers all risk services where Alya is providing independent assurance and the preparation towards assurance to our clients where the assurance can be used by our clients to build confidence and trust with their customers, the general market/public, key stakeholders or when regulatory (by law or oversight) or contractually required.
Audit Firms in Dubai
Benefits of Risk Management for Businesses in Dubai
Risk management practices let you see where projects need attention, and which projects these are. Dovetailing perfectly with any existing Project Management Office processes you already have in place, good risk management can give you the context for understanding the performance of a project and contribute to any health checks, peer reviews or audits.
Leaders have access to better quality and more helpful data which enables them to make better decisions more grounded in the reality of a project.
Being able to access risk information in real time through a project management dashboard means that decisions are made based on the latest data, not a report that is already out of date.
What should the contingency budget for this project be? Let’s guess at 10%.”
Project risk management means that contingency budgets can be more accurately estimated and rely less on the professional guesstimates of the project team. By incorporating risk management into schedule planning and cost planning you can create scenarios to better inform what you should be budgeting in terms of extra time, resource and money.
Overall this will lead to fewer cost and time overruns and better quality plans.
Knowing that risk is being actively managed sets an expectation for project success. With the framework in place to deliver despite the known risks, and open communication about the project’s challenges with senior managers, everyone begins work knowing that success is the expected outcome.
This changes the whole mindset of the team: knowing they are working on something destined to deliver great results for the company improves morale, supports productivity and hopefully engenders and environment where success is achieved!
With risks being actively tracked and managed, the project team can maintain a focus on the critical outcomes. Risk management supports this because it serves to highlight where project outcomes may not be achieved, focusing the team on what to do about that particular concern to get the project back on track.
Our Risk Management Process
Alya Can Help Businesses in UAE
- Working with Audit professionals to help create trust and confidence in their financial reporting and internal control over financial reporting
- Business growth, by providing assurance to clients and other stakeholders related to internal controls
- Business improvement, by assessing risks and controls related to business imperatives, such as launching new products/services, implementing new technologies or remediating control issues
- Providing industry/sector insights and thought leadership with a focus on risk and control matters.