One of the responsibilities of the individuals at the top of an organization is implementing control activities. Control activities include internal controls, such as putting in place policies and procedures for everyone in the organization to follow, setting authorizations, implementing separation of duties, and establishing accountability. Internal control is a broad concept and could comprise a wide variety of activities that are designed to prevent errors, frauds, and illegal acts from occurring in the first place within the operations of the organization. In addition, company management needs to focus more on implementing proactive measures in order to mitigate potential risks.

Why does management need to focus more on implementing proactive measures in order to mitigate potential risks? Explain. What will be the negative results if not done?.