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Identify potential financial risks including liquidity and legal risks.

Assess new risks emerging due to technological advancements.

Evaluate the likelihood and impact of identified risks on financial statements.

Consider the effectiveness of existing control measures in mitigating these risks.

Develop strategies to mitigate, accept, transfer, or avoid risks.

Establish thresholds for risk tolerance and define actions for risks exceeding these thresholds.

Execute risk response plans through policy changes, process adjustments, and allocation of resources.

Update risk management strategies based on new information or changes in the organization’s context.

Strengthen internal controls to prevent and detect errors and fraud in financial reporting.

Ensure compliance with accounting standards and regulations.

Maintain comprehensive documentation of risk management policies, assessments, and procedures.

Ensure records are securely stored and readily accessible for review and audit.

Engage external auditors to review the effectiveness of the risk management process.

Continuously explore and integrate technological advancements that can enhance risk detection and management capabilities.