Question

As we know that, Control risk matrix can identify and evaluate control deficiencies and material weakness. However, Control risk matrix has limitations which is:

They can correctly and unambiguously compare only a small fraction of randomly selected pairs of hazards and can assign identical ratings to quantitatively different risks.

They can mistakenly assign higher qualitative ratings to quantitatively smaller risks to the point where with risks that have negatively correlated frequencies and severities; they can lead to worse-than-random decisions.

So, Do you find that the Control risk matrix has efficient work?

Answer 1

Control Risk Matrix is a template defining the importance of installing that control in the company's process. It reflects the level of risk in the company's process if that control listed in the matrix has not been placed in those processes. It helps in understanding the employee duties segregation according to severity of risk in the process. It also enhance the stakeholder's confidence for company being complied with the regulations for risk management.