What is an "Entity Risk Assessment"?

An "Entity Risk Assessment" is fundamentally a systematic evaluation of potential risks that could impact an organization’s operational compliance. This process is critical as it involves identifying, analyzing, and prioritizing risks that may hinder an entity's ability to achieve its operational objectives and comply with relevant laws and regulations. By conducting an entity risk assessment, organizations can develop strategies to manage identified risks effectively, ensuring that they maintain compliance and minimize the likelihood of adverse events or breaches.

This assessment typically involves reviewing various factors such as internal processes, external environmental factors, regulatory changes, and other elements that could affect compliance. The insights gained from this evaluation help entities to implement appropriate controls, policies, and procedures to mitigate risks, thereby safeguarding their operations and ensuring long-term sustainability.