Comparative Analysis Of Coso I Vs Basel IIi

impact of the identified risks to the organization based on key business drivers (loss of life, loss of

When the manager of project carried out its work plan should take into consideration the possible risks that may occur within the project. The risk is the possibility that occurs a problem within a project and that may cause some change within the same (Heldman, 2011). It should be noted that not all risks are bad since they can be potential opportunities to make some changes that will improve the overall status of the project. In the same way a risk not taken into account in time can create one problem in the project and can completely change the final performance of the project. The project manager can take several elements to identify the risks. Some elements and documents that can be used to identify risks are: search internal risks of the project, such as resources

Internal control has different control principles, establishing responsibility focuses on allotting different tasks to a concerned person, like each sales person should have an individual sales register. Different controls on physical, mechanical and electronic should be exercised as this will help in reducing the unauthorized use of different resources, this is essential for safeguarding assets and

Identify the potential risks which affect the company and manage these risks within its risk appetite;

Risk or threat is common and found in various fields of daily life and business. This concept of risk is found in various stages of development and execution of a project. Risks in a project can mean there is a chance that the project will result in total failure, increase of project costs, and an extension in project duration which means a great deal of setbacks for the company. The process of risk management is composed of identifying, assessing, mitigating, and managing the risks of the project. It

Risk refers to a likelihood, probability, a chance that a loss may occur in a given organization. Most of the times, there is a high risk when there is vulnerability. In this case, vulnerability refers to a weakness that the organization has. Risk assessment refers to the process of identification of potential hazards and proper analysis of the expected losses if those hazards occur (Homeland Security, n.d.). Risk assessment as a way of profiling risk according to impact to the organization. Some organizations have business impact analysis exercises geared towards determination of potential hazards based risk assessment approaches. Organizations’ risk differ depending on the size and the type of business they are doing. The disparity in organizations’ risk call for different adaptation of risk assessment approaches. Even with the disparities of the businesses, proper risk management not only ranks the risks according to the seriousness but also identifies the best methods to control risks in an organization.

Former president and chief executive officer of the online auction site eBay stated, “A business leader has to keep their organization focused on the mission. That sounds easy, but it can be tremendously challenging in today 's competitive and ever-changing business environment. A leader also has to motivate potential partners to join” (Whitman, n.d.). These wise words expressed from a wise and highly successful business leader speak soundly in relation to motivating employees and a sustaining a competitive business advantage. Along with a competitive advantage arises the need to assess the firm’s internal risk. Departmental strengths and weaknesses,

Basel III is a global comprehensive collection of restructured regulatory standards on bank capital adequacy and liquidity. It was developed by the Basel Committee on Banking Supervision to strengthen the regulation, supervision and risk management of the banking sector (bis.org, 2010). It introduces new regulatory requirements on bank liquidity and bank leverage in response to the financial downturn caused by the Global Financial Crisis. Stefan Walter, Secretary General of the Basel Committee on banking supervision said in November 2010:

Under TD Canada Trusts current capital structure, TD’s Tier 1 capital in October 2011 was $28.5 billion which had increased from $24.4 billion in the previous year. TD states that “the increase to Tier 1 capital was largely due to strong earnings, and a common share issuance” TD‘s capital ratios are measured by their financial strength and flexibility, and are calculated using guidelines provided by OFSI for capital adequacy rules including Basel II. OFSI will determine risk-adjusted capital, Risk Weighted Assets, and off-balance sheet exposures through the measurement of capital adequacy amongst the Canadian banks. There are two primary ratios used by OFSI to measure capital adequacy: Tier 1 capital ratio and Total capital ratio (refer to Appendix 2).

The Committee of Sponsoring Organizations (COSO) defines internal control as a process, effected by and entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the reliability or financial reporting, the effectiveness and efficiency of operations, and compliance with applicable laws and regulations. (Louwers, Ramsay, Sinason, Strawser, & Thibodeau, 2015). Internal Control helps entities achieve important objectives and sustain and impose performance. A properly

Risk management, control identification, and selection processes are important, specifically in this organization. It is naïve of a

 Monitoring of controls: Internal control is reviewed periodically by management and by doing, so management makes sure that activities have not become lost or obsolete.

Internal controls and recognizing risks are an important to an organization in order to keep structure, policies and procedures, prevent fraud and embezzlement, data integrity secured and physical

Proper survey and the complete scenario is taken into consideration about risks in the organization which enables the proper risk assessment. Potential of each threat or risk is evaluated and graded in order to reduce the impact of the risks or reduced the probability of its occurrence.

Effective internal controls protect a company’s assets, maintain compliance, improve operations, prevent fraud, and promote accuracy in financial reporting. In 1992 the