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Risk management - EY - India

Government & public sector

Risk management

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Governments have to understand and manage the risks that threaten their strategic goals,
effective implementation and efficient delivery.

Effective risk management not only protects existing value, but also results in better and faster decision making, reduced costs, and improved performance. Many organizations, however, are not getting full value from their investments in risk management because their risk processes are disconnected and critical data and information are not shared. Moreover, as global risks continue to shift at a dramatic pace, organizations must continuously evaluate their risk management processes to ensure that they are focused on the risks that matter. We can help you achieve a highly functioning, integrated risk and control environment that will help you decrease complexity and cost while improving performance and protection of existing assets.

Understanding your RISK Agenda
Addressing the key challenge areas to mitigate risk, reduce cost and create value

Internal audit

Internal audit has always been an integral part of government financial management. It is increasingly becoming an instrument for improving the performance of the government sector. Traditionally, it has been a mechanism for assuring the government that public funds are received and spent in compliance with appropriations and other relevant laws. It also made sure that the government reports use of funds fairly and accurately (financial audit). But today, internal audit takes a more comprehensive view of the economic and social implications of government operations – often termed "value-for –money" or performance audit.

Our experienced team of internal auditors will help you get a detailed perspective of the functioning of your procedures with focus on control gaps, revenue leakage, expenditure mismanagement, procurement faults, etc. We also assist you in closing the identified gaps with specific and practical recommendations in this regard.

Internal controls assessment/review

Monitoring of internal controls is an integral aspect of any process running in an organization. It is designed to address risks and provide reasonable assurance in pursuit of the entity's mission, so that the following general objectives are being achieved:

  • Executing orderly, ethical, economical, efficient and effective operations
  • Fulfilling accountability obligations
  • Complying with applicable laws and regulations
  • Safeguarding resources against loss, misuse and damage

With multiple processes operating within a government set-up, it becomes even more important that the internal controls are well managed and reviewed at frequent intervals for closing any process gaps.

We believe in a three-way approach to achieve the above objectives, i.e.:

  • Continuous review and management of entity processes
  • Effective people management
  • Efficient usage of Technology

Strengthening of internal audit function

The strengthening of internal audit function is required by many governments around the globe. In this regard, we assist governments in reviewing and strengthening its people, use of manuals/ technology and independence in terms of reporting.

Enterprise risk management

Enterprise risk management is a structured ongoing process to assess, mitigate and monitor the risks that an entity faces in achieving its objectives. Its core components are as follows:

  • Risks should be aligned to the defined objectives
  • Key risk affecting the entity should be identified and documented
  • Mitigation plans should be developed for every key risk identified
  • Process for continuous monitoring of the implementation of mitigation plans and risk effectiveness status

We can help you become more aware of the key threats and risk surrounding the functioning of your entity, thus assisting you in its proactive resolution.

Risk assessment of government sectors, programs and schemes

Whether it is formulation, management or execution of government programs or schemes, knowing the challenges during these stages can help government entities avoid them successfully. We can help you make informed and practicable decisions by integrating results of the risk assessment in your decision-making process. With our extensive experience in formulating and managing program and sector l risks for various government functionaries across the world, we can be a key partner to a fruitful implementation of government reforms.

Fiduciary risk assessment

Donor agencies are key stakeholders of the initiatives and schemes run by governments all over the world to improve various aspects of the country's social and economic status. We can assist these agencies in analyzing the financial management systems operating in a particular sector/department/ministry and report on aspects like budgeting, allocations and disbursements, expenditure, reporting, etc. We not only assist you in bringing out the current fiduciary risks prevalent in the identified area of public financial management area, but also recommend and formulate action plans to control and monitor them effectively.


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