The implementation of risk management policies and new regulations are important to ensure accountability and proper management especially in the financial sector: 

a. Who is responsible for risk assessment in the entity? Identity the risks that impacted CLF financial viability, which were the major risks?

b. What is the best way to assess the risks of a complex entity such as CLF. Was CLF's failure a result of improper assessment of risk and/or improper risks controls? If so, to what extent do you think these factors contributed to CLF's failure. Did the internal or external risk weighed more on CLF's failure? Should the internal auditor obtain extensive audit evidence and what alternative evidence would he or she need to examine to obtain a better understanding of CLF risks. What were the shortcomings of CLF risk model? What would you recommend to management?