Minnesota Management & Budget

MINNESOTA MANAGEMENT & BUDGET

GUIDE TO RISK ASSESSMENT AND CONTROL ACTIVITIES

May 2012 revision

Windows User

Internal Control & Accountability Unit www.mmb.state.mn.us/fin/ic

GUIDE TO RISK ASSESSMENT AND CONTROL ACTIVITIES

TABLE OF CONTENTS

GUIDE TO RISK ASSESSMENT AND CONTROL ACTIVITIES......................................................... 1 RISK ASSESSMENT AND CONTROL ACTIVITIES — INTRODUCTION ........................................ 3 EXPLAINING THE JARGON ................................................................................................................... 4 PLANNING FOR A RISK ASSESSMENT ............................................................................................... 7 PREPARING A RISK ASSESSMENT ...................................................................................................... 9 1. DETERMINING WHAT NEEDS TO BE DONE (OBJECTIVES/GOALS) ................................. 9 Documenting the To-Do List ............................................................................................................ 10 Grant Program Compliance .............................................................................................................. 10 Financial Reporting ........................................................................................................................... 13 2. 3. IDENTIFYING WHAT CAN GO WRONG (RISKS) .................................................................. 15 PRIORITIZING WHAT CAN GO WRONG (RISK RANKING)................................................ 16 Risk Ranking ..................................................................................................................................... 16 Risk Reactions .................................................................................................................................. 16 Risk...