Risk assessment may require some specialized knowledge or software. Their audit group is too small to use planning tools. Perhaps it is time to assess the state of the art in risk assessment. Risk is a concept that auditors and managers use to express their concerns about the probable effects of an uncertain environment. Because the future cannot be predicted with certainty, auditors and managers have to consider a range of possible events that could take place.
Managers put assets at risk to achieve objectives.
Physical assets, such as land, buildings, and equipment. Human assets, including knowledge and skills. Intangible assets, such as reputation and information. Uncertainty and randomness exist in nature. Risk is not something to be worried or concerned about, but something to be managed.