A successful risk management strategy requires a strong internal control environment. The risk control matrix (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 your organization, this document can help you assess each control. The control assessment can then also be summarized to develop an action plan.

This document outlines risks and controls common to the 5.2.1 Manage Capital Planning process in a risk control matrix (RCM) format.

Sample risks include:

• The deal is not approved by a person of appropriate authority.
• Expenditures are not properly included or excluded from purchase accounting and are not recorded in the proper period.
• Legal diligence is not appropriately performed prior to the execution of mergers and acquisitions transactions.
• Mergers and acquisitions expenditures are not authorized in advance.

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.