The risk management policy forms part of ABAC Certification internal control and corporate governance arrangements. Good risk management practice is about having a holistic approach, driven by a desire to balance stability and innovation.
This policy explains ABAC Certification’s underlying approach to risk management, procedure Risk Management documents the roles and responsibilities of the Managing Director, ABAC Certification Manager and other key parties. It also outlines key aspects of the risk management process and identifies the main reporting procedures. In addition, it describes ABAC Certification evaluates the effectiveness of the company’s internal control procedures.
Risk is often defined as “the threat or possibility that an action or event will adversely or beneficially affect an organization’s ability to achieve its objectives”.
There are many potential benefits of implementing and embedding risk management as a management tool, some of which are listed below:
- Supports strategic and business planning
- Allows new opportunities to be grasped
- Enhances communication across ABAC Certification
- Supports effective use of resources
- Promotes a continuous improvement culture
- Helps to focus the internal audit programme
- Reassures stakeholders
- Reduces shocks and surprises
Underlying approach to Risk Management
The following key principles outline ABAC Certification’s approach to risk management and internal control.
- Maintaining an environment where issues can be raised and discussed openly between Management and the Impartiality Committee;
- ABAC Certification makes conservative and prudent recognition and disclosure of the financial and non-financial implications of risks;
- Risk is considered as an embedded part of every key project (capital, revenue or other);
- Key risk indicators will be identified and closely monitored on at least a quarterly basis by The Managing Director and Certification Manager and reported on to the Impartiality Committee.
Signed,
KANWAL ZAFAR
Managing Director ABAC Center of Excellence Limited
CRI-POL-008, Rev. 1.0, Date 04-10-2018
