The risk assessment documents the business and risk tolerance environment, evaluates current operations and controls, and identifies potential gaps in risk management.
It is a good idea to have a risk assessment at least every two years.
In challenging economic times like these, private wealth management offices need to be more vigilant about potential risks. This is the right time to revisit controls all across the organization, eliminating silos and creating connected activities, thus reducing risk and enabling management to make informed strategic and tactical decisions.
Elaine Spang, CPA ([email protected]), is a partner at Windward Advisory Group (www.windwardadvisory.com), a private wealth management operations and technology consultancy with offices in Princeton, N.J., Phoenix and Carlsbad, Calif.