Risk Control Self Assessment (RCSA)
In the previous articles, we have understood how data can be collected from internal as well as external sources in order to facilitate decision-making. The next logical step after the collection of data is to actually make the decision. The collection of loss data relates to events that have taken place in the past. However, risk control and self-assessment (RCSA) is the next step. This is the step where the company uses past data to determine the present level of risk. In this article, we will have a closer look at what risk control and self-assessment (RCSA) is and what are the various steps that are undertaken as a part of this analysis.
What is Risk Control and Self Assessment (RCSA)?
The risk control and self-assessment (RCSA) methodology have certain characteristic features.
It is important to know that this process is dynamic. This means that it keeps changing constantly and depends upon the level of controls which have been introduced by the unit.
The risk control and self-assessment (RCSA) is iterative in nature. This means that the methodology works on a trial and error basis. Whenever any measure is taken to monitor risks, the effect is constantly measured. If the solution is not working as intended, the process is changed and the iteration is repeated
The risk control and self-assessment (RCSA) process does not take place at the organization level. Instead, as a part of this process, organizational units are identified. The policies are implemented and the success is monitored at the unit level. The organization-wide risk control and self-assessment (RCSA) is just the sum of the different units in the company
Steps Followed During Risk Control and Self Assessment (RCSA)
The risk control and self-assessment (RCSA) methodology is a structured methodology that has four different stages. One stage may have one or more steps. The details regarding these stages have been mentioned below:
The end result of this process is that risk entities are constantly engaged in risk management activity. In many organizations, a dashboard is maintained where the risk levels of various units are constantly monitored. Thus the risk control and self-assessment (RCSA) framework helps in mitigating operational risks.
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