Operational risk management : An implication in leasing business

Abstract

This study also includes risk management and tools to protect all levels of risk efficiently and effectively in order to achieve organization’s business goal and to sustain long business growth. The leasing business tends to expand aggressively and the business operation itself has included various functions, each of which usually involves revenue and expenditure cycles. Such processes are highly subject to possible losses or damages from various reasons such as relaxed working process, the carelessness of employees and fraudulent intention. We select qualitative approach to assess risk. The probability of the risk impact of leasing business rang, from 1 to 8 points of scale(which normal used in leasing business in Thailand) and risk impact level (or the magnitude) of each activity from the low to high. The results of risk analysis and assessment will be as a part of an internal audit plan and procedures in order to focus the audit and resources management in all significant activity areas which can pose high risk. Internal control can filter or lessen the risk that can cause damages in organization. This will add in auditing report and being acceptable to management.