Will the Possible Effects of Corporate Risks Change with the Control or Action Plans to Be Implemented?
Yes, the possible effects of corporate risks can change with the control or action plans that are implemented. Control and action plans are developed to mitigate, reduce, or eliminate the identified risks. These plans aim to improve the organization’s ability to manage risks effectively, minimize losses, and protect its assets.
By implementing control and action plans, the organization can reduce the likelihood and potential impact of identified risks. For example, if an organization identifies a risk of financial fraud, it may implement control measures such as segregation of duties, regular audits, and fraud awareness training for employees. The implementation of these control measures will reduce the likelihood of fraud occurring, and if it does occur, the impact will be minimized.
Therefore, control and action plans play an essential role in managing and reducing corporate risks. They enable organizations to respond proactively to identified risks and minimize their impact on the organization.