Question: Summarize

Template 8: Risk Assurance Having completed the previous seven templates, the organization will be in the position of having implemented a comprehensive risk management initiative. This will enable the organization to provide risk assurance to relevant stakeholders, regarding the management of the significant risks faced by the organization. The means by which this risk assurance is provided should be recorded in Template 8. Completion of this template is also an opportunity for the organization to confirm that the improvements achieved will be maintained in the future. The actions recorded in Template 8 represent the risk governance arrangements within the organization. Assurance requirements 1. Details of the risk assurance requirements that are required by different stakeholders in the organization, especially those required by regulators and other stakeholders that are vitally important to the organization. Risk assurance requirements vary and are different for each stakeholder in the organization especially those required by regulators. Now that we have completed the risk governance component of the template it is best to look at assurance and how we can continue to maintain and how this will be achieved through governance arrangements. We must have internal controls in place to ensure that the assets of an organization are protected and safeguarded from any threats. We need to regularly update our systems and records to ensure accuracy. We need to be able to comply with any rules and regulations set forward. Promoting effective and efficient processes is also important. Having said all that assurance can only be achieved if all the stakeholders are aware of the threats that surround the organization and what is being done to mitigate that. Audit committees are an exceptional way to get some feedback as to what the organization could improve on because they will assess whether the internal controls you have put in place are effective or not.

Sources of assurance 2. Information on the sources of assurance that are available within the organization by way of both static documents and dynamic reports, including those giving information on risk performance and leading/following indicators. Itrustu Insurance Company has several sources of assurance within the organization. These sources include: 1) Internal audit: The internal audit team regularly reviews the effectiveness of the risk management process and provides assurance to the Board of Directors and executive management on the adequacy of the controls in place. 2) Compliance function: The compliance function provides assurance that the company is operating within the legal and regulatory framework and that risks. associated with non-compliance are being adequately managed. 3) Risk reporting: The risk management team regularly provides risk reports to the executive management and Board of Directors. These reports provide information on the performance of the risk management process and any emerging risks that need. to be addressed. 4) Incident reporting: The company has a process for reporting and investigating incidents, including those related to cyber threats, natural disasters, and other risks. This provides assurance that risks are being identified and managed appropriately. 5) Business continuity planning: The company has a business continuity plan in place to ensure that critical operations can continue in the event of a disruption. Regular testing of this plan provides assurance that the company can respond. effectively to a crisis. 6) External audit: The company undergoes an annual external audit, which provides independent assurance on the adequacy of the controls in place and the accuracy of the financial statements. These sources of assurance are both static documents and dynamic reports, which. provide information on risk performance and leading/following indicators. Regular updates and reviews of these sources of assurance are conducted to ensure that. they remain relevant and effective in providing assurance to relevant stakeholders

Three lines of defence 3. Details of the three lines of defence structure that exists in the organization to ensure that management is responsible for risk management, appropriate specialist expertise is available, and arrangements are in place to ensure independent auditing of performance. The three-line defence structure is a structure that is utilized to encourage accountability amongst employees, managers, and executives in managing operational risks. The first line of defence involves planning, controlling daily operations, identifying, and managing risks that form because of their daily activities. In Itrustu, the first line of defence would be directed at managing daily insurance claims, customer interactions and basic stakeholder interactions. They would be tasked with limiting and mitigating risks that threaten the daily operations of the company. The second line of defence involves identifying and mitigating risks that affect the operations of the entire company. This involves running tests, assessments, and external audits to identify, measure and document the operational risks the entire company is facing, not just its daily operations. This line of defence needs to be a lot more vigilant, as the risks they deal with can cause massive damage to the company. In Itrustu, the second line of defence would include risk managers that overview the entire operation, and mitigate risks such as illegalities, fraudulent, security threats to the entire organization as well as any other risk that poses a risk to the whole company. Lastly, the third line of defence includes internal auditors, that function neutrally and without any influence from any stakeholders. The third line of defence is put in place to ensure that the first two lines are effective. In Itrustu, the third line of defence would be auditors that will run tests, assessments, and any other evaluation methods on the risk management techniques of the first two lines. These employees will work in the risk management department but operate independently and without influence from any other stakeholders, to produce an accurate report and representation of the risk management culture of Itrustu, as well as where improvements are needed.

Challenging assurance.

4. Information on risk performance within the organization, including details of how standards are set, how they are implemented and the arrangements for monitoring of performance, so that these can all be challenged by top management. To provide information on risk performance within the organization, including details of how standards are set, implemented, and monitored, there are several steps that can be taken: 1. Identify the key risks: Start by identifying the key risks faced by the organization. This could be done through a risk assessment process or by reviewing past incidents or near misses. Once the key risks are identified, the organization can then determine the standards that need to be set to manage these risks. 2. Set standards: Once the key risks have been identified, the organization should set standards for managing those risks. These standards should be clear and measurable, and they should be communicated to all relevant parties within the organization. 3. Implement standards: After the standards have been set, the organization should implement them. This may involve developing policies and procedures, training staff, and allocating resources to support the implementation of the standards. 4. Monitor performance: To ensure that the standards are being implemented effectively, the organization should monitor performance. This could involve conducting audits or inspections, reviewing performance metrics, and soliciting feedback from staff and stakeholders. 5. Provide information to top management: The information on risk performance, including the details of how standards are set, implemented, and monitored, should be provided to top management. This will enable them to challenge the effectiveness of the systems, processes, and controls in place to manage risks. Overall, the process of providing information on risk performance within the organization requires a proactive approach that involves identifying key risks, setting clear standards, implementing those standards effectively, and monitoring performance to ensure that the standards are being met. By providing this information to top management, the organization can ensure that they have the information they need to make informed decisions and to challenge the effectiveness of the systems, processes, and controls in place to manage risks.

Assurance reports 5. Details of the risk reports that are produced by the organization, and the stakeholders for whom these are intended, to ensure that they are designed in a way that fulfils all statutory reporting requirements. Regular risk reports will be produced by the organisation to give risk assurance to important stakeholders such as shareholders, board members, senior management, and external auditors. These reports will be structured to meet all statutory reporting obligations and will include information about the organisation's key risks, the controls in place to manage these risks, and any events that have occurred. The reports will be created quarterly and delivered to stakeholders after being evaluated by the risk management team and senior management. The reports will also be submitted to the board of directors at their regular meetings, and any major issues or concerns will be forwarded to the board for action. To sustain the progress made through the risk management initiative's execution, the organisation will risk governance structure that includes regular evaluations of the risk management process and the efficacy of the controls in place. The risk management team will also undertake periodic risk assessments to detect new or emerging issues and to keep the risk management approach current and relevant.