Risk management-based monitoring system is designed for those institutions whose key functions involve conducting regular analyses of institutions and/or corporate bodies, assessment of their performance, and controlling the execution of risk management requirements (e. g. the State Labour Inspectorate).
The system enables to identify the quantitative and qualitative values associated with a particular situation and recognized threat, thus assessing, and analyzing risks.
Once the management system is introduced, the institution‘s resources are used very effectively. Only enterprises assigned by the system to the riskiest business category are monitored. The surveillance actions are transparent, reasonable, and proportionate to the scale of violation.
The greatest burden of monitoring falls on the major regular offenders – this is how the principle of proportionality is realized, thus improving business conditions for appropriately operating companies. Transparency and forecast of processes in the supervisory institution reduce preconditions for corruption and abuse of law.
The advantages of risk management information system:
- Possibility to identify risks in their names and formulations of their description and assess their impact and probability;
- Risk mapping, containing the identified and grouped key risks and their distribution, determined according to their probability of occurrence and potential impact and introduction of risk assessment;
- Risk maps are presented in various sections, such as the national, controlled areas, level of industry sectors, etc.;
- Setting up a compilation for identifying risks’ indicators (criteria).
Key features:
- Risk identification;
- Risk prioritization based on specified criteria;
- Identification of the key reasons for the controlled objects non-compliance with requirements;
- Selection of enforcement measures by identified risks and their causes;
- Planning and implementation of enforcement measures to promote the compliance of the controlled object;
- On-going assessment of the impact of enforcement measures;
- Activity planning;
- Risk identification, assessment, and management;
- Selection of controlled objects;
- Administration of data exchange.
