A successful risk management strategy requires a strong internal control environment. The RCM format emphasizes that strong and risk-oriented internal control environments are often optimized with automated/manual controls, depending on the situation.
An RCM provides an overview of different control objectives that organizations should take into consideration and the corresponding controls to safeguard the company against risks which may arise if not checked timely. Once customized to an organization, this document can help the user in assessing each control. The control assessment can then also be summarized to develop an action plan.
This document outlines risks and controls common to the maintenance aspect of the Manage Fixed Assets
process in a risk control matrix (RCM) format.
Sample risks include:
This document can be used as a sample RCM and is not meant to be an exhaustive list of risks and controls. The KnowledgeLeader team will periodically update this RCM with new content. Organizations should select, update and modify the risks and controls included in this document to ensure that it reflects business operations.
- Access to assets during maintenance, retooling, upgrading, or significant long-term maintenance may not be adequately safeguarded against theft, vandalism, or unauthorized use
- All costs attributable to asset maintenance, retooling, or expenditure to modify its useful life may not be accurately captured and recorded
- Assets temporarily removed from service for retooling, upgrading, or significant long-term maintenance may not be properly identified or recorded
- Changes in critical fixed asset information for financial, tax, or disclosure reporting due to maintenance, retooling, or expenditures that modify an asset's useful life may not be adequately identified, captured, and recorded