What's on the radar looking forward? How to use risk hot spot updates

Where did risk hot spot updates first start?

Strategy consulting firms

Internal auditors

Accounting firms

Regulators

Who can be polled for such updates?

All of these answers

The C-Suite only

Risk and audit professionals

CEOs only

Why might “hot spot” updates be helpful?

They save you looking at KPIs and KRIs

They give you peer insights into what others are worrying about generally

They tell you precisely what you need to worry about

They tell you when you don’t need to worry about risks in your own company

Risk hot spot updates are most useful when

They survey risks in a sector that is of relevance to your organisation

All of these answers

They survey risks across all sectors

They poll the most people

Are there any dangers using risk hot spot updates?

No they always cover the key issues

Yes but only because some take an average result of what is a risk

Yes, for a range of reasons including compilation and use

No but sometimes people use them incorrectly

Why can some people use these risk up-dates wrongly?

They forget the choice of risks may be limited

All of these answers

They try to tick off the risks quickly without probing the specifics

They forget the specific risks listed may not be exactly what is relevant to them

If there was one most important short-coming to using risk up-dates what would that be?

They may not explain their track record of success and how they are “pressure tested with other information”

They are created with a sales and marketing intention

They may not explain their track record of success

They only get input from certain people

What can be done to do quality control over risk hot spot updates?

Compare proposed risks to risks and incidents already in the public domain

Map risk hot spots across different sources and (perhaps) against a value chain

Understand how risk and assurance disclosure requirements are changing

All of these answers

What is the best frequency for risk hot spot updates?

Annually

It depends, but sometimes more frequently than annually provided there is some quality control over what is shared

Every 5 years

Quarterly

Should you carry out audits on risk hot spot areas?

Yes, but when you have used these inputs as part of the audit planning process

Yes if it’s a big risk for your organisation

Yes if senior management or the board agree

Yes, always

What's on the radar looking forward? How to use risk hot spot updates

Where did risk hot spot updates first start?

Who can be polled for such updates?

Why might “hot spot” updates be helpful?

Risk hot spot updates are most useful when

Are there any dangers using risk hot spot updates?

Why can some people use these risk up-dates wrongly?

If there was one most important short-coming to using risk up-dates what would that be?

What can be done to do quality control over risk hot spot updates?

What is the best frequency for risk hot spot updates?

Should you carry out audits on risk hot spot areas?

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