Risk assessment is the process of identifying, analyzing, and evaluating potential inherent and residual risks that may negatively impact an organization’s objectives, assets, and operations. The goal of risk assessment is to understand the severity and likelihood of risks in order to take appropriate prevention or mitigation measures.
ISSUE
- According to Law 4795/2021 and the Joint Ministerial Decision of 2023, first and second level Local Government Organizations (LGOs) are required by 30/04/2025 to establish a risk management unit to provide documented reports of their operational and financial/fiscal risks.
- The next key issue is the planned resolution of the aforementioned risks following the guidelines of the National Transparency Authority, risk assessment standards, and the administration’s goal-setting for the LGOs.
SOLUTION
- The Risk Assessment Services Department of Lever Development Consultants S.A. has developed and applied techniques and tools that can assist in the effective recording, analysis, and evaluation of risks and their impacts on the daily operations of first and second level LGOs.
- Additionally, the company’s specialized and experienced staff can quickly advise and train the head of the Risk Assessment Unit or replace them if the LGO decides it cannot staff the unit.
RESULT
Beneficial compliance with legislation for the LGOs and a significant contribution to effective corporate governance using modern tools and in line with legal requirements on risk assessment.
