Suggested Certification for Risk Assessment

GARP - FINANCIAL RISK MANAGER (FRM), ISACA’s Certified in Risk and Information Systems Control (CRISC) certification
Recommended Book 1 for Risk Assessment

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Recommended Book 2 for Risk Assessment

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Recommended Book 3 for Risk Assessment

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Recommended Book 5 for Risk Assessment

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Interview Questions and Answers

Data analytics can be used to identify patterns, trends, and anomalies that may indicate potential risks, allowing for more accurate and informed risk assessments.

Objectivity can be enhanced by using multiple perspectives, relying on data and evidence, and avoiding personal biases.

Leadership plays a critical role in promoting a culture of risk awareness, providing resources for risk assessment, and holding individuals accountable for managing risks.

Common tools and techniques include SWOT analysis, HAZOP (Hazard and Operability Study), fault tree analysis, and event tree analysis.

Risks are typically prioritized based on their severity, which is a function of their likelihood and impact. Risks with the highest severity should be addressed first.

Inherent risk is the risk before any mitigation measures are implemented, while residual risk is the risk that remains after mitigation measures are in place.

Risk assessments should be reviewed and updated regularly, typically at least annually, or more frequently if there are significant changes in the organizations environment, operations, or regulatory requirements.

Common challenges include lack of data, incomplete information, subjective biases, and resistance to change.

Stakeholders play a crucial role in risk assessment by providing insights, expertise, and perspectives on potential risks and mitigation strategies.

Risk assessment findings should be communicated clearly and concisely, using appropriate language and visuals, to ensure stakeholders understand the risks and their potential impact.

Risk assessment is often a key component of compliance programs, helping organizations identify and manage risks related to regulatory requirements.

Many businesses have to deal with four large categories of financial risk.

  • Market risk - when the specific environment in which a company competes is significantly changed.
  • Credit risk - businesses offer a line of credit to their customers; also, the risk of not having enough funds to pay it's bills.
  • Liquidity risk - how quickly a corporation, if it needs money, can turn it's assets into cash; it also relates to it's regular cash flow.
  • Operational risks - daily business practices of an organization that includes fraud, litigation, and conflicts with staff.

 Predictions and challenges for the accounting profession

  • Customer retention would become a challenge in the face of enforcement automation.
  • Staffing challenges in an aging professional talent pool.
  • It will become necessary to market and sell your services.
  • Time-based billing becomes history, it's value-add based.
  • Company consultancy services revenue becomes a large revenue source.
  • It is important to leverage technology, automation and artificial intelligence.
  • Alignment with global norms in accounting and industry.
  • Global outsourcing
  • Dealing with economic volatility
  • Time management and correspondence.

Some common types of mistakes to look for when reviewing accounting reports.

  • Data entry errors.
  • Error of omission.
  • Error of commission.
  • Error of transposition.
  • Compensating error.
  • Error of duplication.
  • Error of principle.
  • Error of entry reversal

Explain the system you developed..

Explain the improvement with the problem you faced, Some accounting packages are Tally, Quickbooks, Dolibarr, TurboCASH, Open Systems Accounting Software, etc.

For anyone in a role that involves risk management, being able to communicate in writing and attention to detail are fundamental skills. This question will help you understand the way risk documentation is being prepared

Continuing education, Attend conferences and events, Follow industry leaders, Sign up to newsletters, etc.

In trial balance, every account is divided into debit (dr.) and credit (cr.) balances whilst in the balance sheet, every account is divided into assets, liabilities and stockholders equity. Trial balance is a statement that is created with the purpose of recording balances from all the ledger accounts. A balance sheet is created to check whether firm assets are equal to the equity and liabilities.

Yes I am familiar with accounting standards. Accounting standards aim to ensure that the financial centers of the world, can use a global financial reporting framework that ensures effective regulation of financial markets. Accounting standards are required to ensure that the financial statements reflect financial results accurately and consistently. Without guidelines, financial statements users would need to know each company's accounting rules and it would be difficult to compare the companies.

There are two methods for estimating the amount of accounts receivables not expected to be collected. Bad debt expense can be estimated using mathematical models such as the likelihood of default to assess the potential losses to delinquent and bad debt. The statistical analyses can use historical data from both the company and the industry as a whole. Usually, the actual percentage will increase as the age of the receivable increases, indicating an increasing default risk and decreased collectability.

Instead, taking a percentage of net revenue, depending on the company's past experience with bad debt, will measure a bad debt cost. Organizations make periodic adjustments to the credit risk allowance entry so that they suit the existing mathematical modeling allowances.

The basic accounting equation, also called the balance sheet equation, describes the relationship between the assets, liabilities, and owner equity of a person or business. It is the basis for the double-entry bookkeeping system. For each transaction, the total debit's equal the total credit's.

Fair value as the price earned for selling an asset or paying for the transfer of a liability in an orderly transaction between market participants on a given date, usually for use over time on financial statements.