PHILIPSBURG, Sint Maarten – The current risk management science has several areas of importance; however the fundamental principle is based upon Best Known Practices and Good Governance and not Intentional Damage Control practices. In many businesses the lack of segregation of duties combined with poor supervision ends in 90% of the cases in misappropriation of funds or goods, which is detected when the sum is already in the hundreds of thousands.
Unfortunately these shortcomings are directed to the consumer that has the pay the price for internal shortcoming of the management. The Auditing science is not limited to the output of the Financial Statements, but extends to other fields like Cost management, Revenue improvement and mitigation of intentional damage control, if the suspicion exists or materialization is present.The Risk based Audits are audits performed by Certified Risk Analysts that dissect your business operation and determine where the management should zoom in to shut down the sensitive areas for misappropriation.
The Operation-Financial and Investment practices are monitored and justification of costs is explained. Currently there are not many professionals in this particular field in St Maarten and therefore the much needed service is not marketed accordingly. Risk based audits don’t have to prove a fact, but the possibility that the fact may occur if no actions are taken, which relates to preventive management.
The Risk science measures the fundamentals and the intensity of the what, how and when to conduct certain controls to prevent financial or tax inconveniences while gives the necessary management tools using the ARA principle, Accessibility, Reliability and Availability functionality within Data management.