Not Reporting Risks as Audit Issues – Will perform Advisory Instead?

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1. It seems like you’re considering the implications of not reporting risks as Audit issues and opting for advisory services instead. Here are some points to consider:

   1. Risk Management vs. Compliance: While advisory services can provide valuable insights, it’s essential to balance risk management with regulatory compliance. Not reporting significant risks might lead to oversight, which could have serious consequences down the line.

   2. Stakeholder Trust: Transparency in reporting risks can enhance trust with stakeholders. If risks are managed openly, it helps build confidence that the organization is proactive and responsible.

   3. Long-term Effectiveness: Advisory services can help address current issues, but if underlying risks aren’t documented and reported, they may resurface in the future. It’s crucial to have a comprehensive approach that integrates both proactive advisory work and necessary reporting.

   4. Operations and Strategy: Consider how not reporting risks might affect overall business strategy and operations. Ensuring that all potential risks are identified and discussed can lead to better decision-making and strategic planning.

   5. Culture of Accountability: Encouraging a culture that allows for the reporting of risks, even as advisory work is performed, reinforces accountability. It’s important to communicate that identifying and reporting risks is a strength and not a weakness.

   6. Communication with Leadership: If opting for an advisory approach, ensure that leadership is aware of the potential risks and understands the rationale behind the decision. Clear communication can guide future actions and support a unified approach to risk management.

   Making these considerations can help create a balanced framework that leverages both advisory capabilities and robust risk reporting. What are your thoughts on the potential balance between the two approaches?

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