Operations Auditing

Finals Exam

Segregation of duties

Preventive

Authorizations

Preventive

Access passwords

Preventive

Security cameras

Preventive

Competent employees

Preventive

Supervisory review

Detective

Exception reports

Detective

Reconciliations

Detective

Security cameras

Detective

Confirmations

Detective

Required documentation

Directive (Corrective)

Policies and procedures

Directive (Corrective)

Training programs

Directive (Corrective)

Supervisory review when there is a lack of segregation of duties

Mitigating (Compensating)

Inability to produce as many units as required

Capacity

Process generating excessive amounts of waste

Capacity

Producing too many defective parts (i.e. error rate)

Capacity

Delivering ordered goods or services past the promised date

Capacity

Inability to provide high quality service to every customer

Capacity

Failing to maintain beneficial relationships with customers

Strategic

Computer system’s inability to support the operating unit’s needs

Strategic

Manufacturing lines being unable to keep pace with sales growth

Strategic

Lack of funding to finance business expansion

Strategic

Knowledge drain due to employee turnover

Strategic

Failure to respond to changing customer preferences

Strategic

Failure to meet external requirements

Compliance

Failure to meet internal standard operating procedure (SOP) requirements

Compliance

Failure to meet combined requirements (e.g. contracts)

Compliance

Energy supply disruption

Natural Environment

Damage from fire, water, or natural disaster

Natural Environment

Inability to secure needed resources (e.g. water and minerals)

Natural Environment

Dependency on carbon-based sources of energy

Natural Environment

Business interruption caused by disease

Natural Environment

Social unrest triggered by changes in government

Political

Changes in legislation or regulation due to government changes

Political

are driven by the participants’ experience and intuition about the risks involved

Subjective measures

is a complex activity that some confuse with risk management

Risk assessment

means that we should look for weaknesses (sometimes referred to as vulnerabilities) that would make an asset susceptible to damage or loss from the hazard.

The conduct of a risk assessment

Identify events that may hinder the ability of the organization to achieve its objectives partially or completely.

Objectives-based

may be useful techniques to collect the relevant information and assess the impact of these events.

brainstorming and the Adelphi method

Create different scenarios or alternative ways of achieving objectives and determine how forces interact

Scenario-based

Combination of objective-based and scenario-based approaches consists of lifting resources at risk and the threats to those resources.

Risk Charting

This is referred to as mitigation

Risk Charting

First of all, every organization should have a mission and vision, and establish goals and objectives that drive employee actions toward their achievement.

Effectiveness

The ______ should be clear and be communicated to all employees, providing a sense of direction, motivating, and sparking ambition toward its achievement.

Mission

provide identifiable markers of the achievement of something, and help establish tactical actions to work toward

Goals and Objectives

the process of evaluating the degree to which the organization, program, or process is achieving its goals and objectives

Effectiveness

The use of inputs and other resources toward the achievement of goals and objectives in some form of productive activity.

Efficiency

The price paid for organizational resources.

Economy

Performance of all work with high quality

Exellence

based on the perceived value that customers derive from the product or service and when developed and applied correctly, can result in higher profits.

Differentiation

The treatment of others with dignity and respect.

Equity

Environmental concerns have reached high levels over the past years and will likely to continue to garner much attention in the future.

Ecology