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RISK MANAGEMENT
Enterprise Risk Management and Internal Controls Advisory
Enterprise risk management makes financial, operational, strategic and compliance exposures visible before they disrupt business objectives. NMS Consulting supports companies in developing risk inventories, impact-and-likelihood matrices, control responsibilities, key risk indicators and management reporting frameworks.
WHEN TO CONSIDER
When Does a Company Need Enterprise Risk Management Advisory?
This advisory service is intended for managers and shareholders making decisions where financial visibility, operating controls or transaction structure are important.
ADVISORY FOCUS
Advisory Priorities
We link financial evidence, organisational responsibilities and practical business objectives in the following areas.
Enterprise risk inventory
Identify strategic, financial, operational and compliance-related exposures and establish a shared method for classifying and updating them.
Impact, likelihood and risk appetite
Define consistent measurement criteria, risk tolerance thresholds and prioritisation rules. Consider inherent risks and the mitigating effect of existing controls.
Control ownership and reporting
Clarify risk owners, preventive and corrective controls, early-warning indicators and the reporting cadence to management or the board.
SCOPE OF SERVICES
Scope of the Engagement
The exact modules and level of detail are selected with management based on the agreed objectives, data availability and timetable.
Risk mapping and diagnostic
Use executive interviews, business processes and financial data to identify significant exposures.
Risk matrix and prioritisation
Develop impact-likelihood scoring, tolerances, thresholds and a practical risk heat map.
Financial and liquidity risk review
Consider FX, interest rate, credit, liquidity, leverage and financing-related risk indicators.
Operational and supply chain risk
Evaluate supplier dependency, customer concentration, capacity, people and continuity vulnerabilities.
Internal control review
Assess key approval points, segregation of duties, responsibilities and control documentation.
Key risk indicators and governance
Design KRI dashboards, escalation thresholds, board reporting and periodic reviews.
KEY DELIVERABLES
Key Deliverables
Outputs may include the following materials depending on the agreed engagement:
HOW WE WORK
Our Working Process
01
Identify
Review strategic objectives, financing structures and operating activities to map exposures.
02
Assess
Score likelihood, potential impact and existing controls to prioritise material risks.
03
Control
Assign owners and agree risk treatment, preventive measures and escalation rules.
04
Monitor
Build KRI reporting and regular management or board reviews.
KEY CONCEPT
Risk management versus internal audit
Risk management is the ongoing process of identifying, assessing and owning uncertainties that might affect the organisation's objectives. Internal audit provides an independent perspective on governance, control and risk-management effectiveness within an agreed assurance framework. Risk owners manage and respond to exposures; auditors assess whether the relevant controls and processes operate as intended. The functions are complementary rather than interchangeable.
Strategic Perspective
Financial and Governance Perspective
Embedding Risk Ownership in Management Decisions
A risk register has limited value unless it changes responsibilities and decisions. Each material risk needs an accountable owner, an assessment of potential impact and likelihood, documented controls and a practical response. Early-warning measures should be related to the business: overdue receivables, supplier concentration, liquidity headroom or service interruption indicators may all be relevant.
Risk appetite is a management and board judgement, not a number selected by an adviser in isolation. The advisory process can support a consistent framework for defining thresholds, escalation routes and reporting responsibilities. Internal audit and compliance specialists can provide distinct assurance and regulatory expertise where required.
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RELATED INSIGHTS
Explore Further Reading
GUIDE
What Is a Financial Audit? Controls and Assurance
A financial audit involves the examination of financial information under a defined professional mandate. Formal assurance audits differ from internal control
Read Guide →
FREQUENTLY ASKED QUESTIONS
Questions About Enterprise Risk Management
What is enterprise risk management?
Enterprise risk management identifies, evaluates, prioritises and monitors uncertainties that could affect organisational objectives. It links risk responses to strategy, controls and accountability.
How is a risk matrix prepared?
Risks are documented, likelihood and impact scales defined, existing controls assessed and treatment actions prioritised for assigned owners.
What financial risks can be reviewed?
Depending on the business, foreign exchange, interest rate, credit, liquidity, borrowing and cash flow risks may be evaluated alongside operational vulnerabilities.
How do ISO 31000 and COSO ERM relate to risk management?
These frameworks can inform governance and systematic evaluation, monitoring and improvement. Adopting a framework does not by itself certify that every risk is controlled.
Can risk management eliminate every risk?
No. The aim is to understand and manage exposures within the organisation's risk appetite, not promise a risk-free business.
What are typical outputs?
A project may produce a risk register, risk matrix, treatment actions, KRI dashboard and a board reporting structure, depending on scope.
Discuss Your Business Priorities
Share your objectives and current challenges with NMS Consulting. We will discuss the next steps and define the appropriate advisory scope.
Independent reference: IIA Global Internal Audit Standards — View the standards ↗