Why Risk Management is Significant for every business in Dubai?

Risk Management | Alkhadim LLC

Facing business risks?? Not able to detect business risks timely?? Performance and efficiency going down due to risks??
Don’t worry and go for risk management audit services. Hire any professional and dedicated audit firm in UAE and leave your stress.
Every business organization has to face risks. There are various sources from which risks can be originated. These sources include financial market uncertainty, Project failure threat, the risk from a natural disaster, credit risk, uncertain circumstances or events, legal liabilities, etc. Certain risks are necessary for the future growth of the organization. Risk management service offered by Audit firms in UAE will recognize these risks in advance and besides that, they will take precautionary steps after analyzing them. Risk management in terms of Audit Firms in Dubai is identifying and analyzing risks in financial statements before making any decision.  In simple words, risk management is the continuous reviewing of the organization to determine the processes that are providing harm to your organization. For ensuring the success and growth of the business, it must be capable to assess and manage risks.

Why Risk Management and assessment is required?
There has been a lot of business failures recently and the collapse of large organizations. The economic challenges prevailing currently are also one such factor that demands revision of risk profile at regular intervals. As the conditions in market changes, risk also changes. Hence there arise a need to reflect such changes in risk profile. But certain organizations do not make any adjustments in risk profiles. Such organizations are helped by audit firms in Dubai in risk assessment and prioritizing them so that the well-being of an organization is affected.
The number of incorporations in Dubai is increasing because a lot of opportunities and offers are given by the government. As a result audit firms in Dubai are also increasing. More and more businessmen and investors are ready to set up in Dubai to avail the advantages offered by the government. As a result, competition is increasing and further, there is an increase in risks to businesses. This creates the need for Audit firms in UAE for adopting risk management practices. It will keep up the performance and efficiency of the organization.

What will the experts of Audit Firms in UAE do?
Their main focus is on the assessment of risk portfolios, and lay emphasis on the enhancement of business performance. Not only this, to meet internal and external expectations, they will frame the risk strategy, establish governance and culture in an organization. They will find a suitable remedy for different risk issues. Audit firms in Dubai will reduce compliant costs and introduce measures related to new compliances. They will assess the risk management capabilities of the organization. The experts employed by Audit firms in UAE will reduce cost and add value by transforming risk management functions. They also develop tools that will handle compliance issues and provide a report on financial risks by continuously measuring and monitoring them. They also take care of corporate treasury functions. The strategies to avoid risks are not only framed rather executed properly using the expertise of auditors appointed by audit firms in the UAE. Besides managing corporate treasury, they provide accounting support, hedging governance and ongoing valuation services.

How Risk Management by Audit Firms in Dubai will benefit the organization?

Benefits of Risk Management | Alkhadim LLC

Benefits of risk management are many. There is a need to create awareness among business owners. Risk assessment and management are two significant functions that every organization must carry out for future growth and success. If business risks are not assessed timely and actions are not taken to manage such risks, a business may fail. Those business owners, who think that risk assessment audit leads to extra cost, they should know that it will save future cost and time of the organization.
•    The reputation of your business will improve
•    Any potential business risk harming your business will be identified timely through risk management
•    There will be saving in time and cost to the organization
•    Resources of the organization will be saved
•    Risks can be avoided in the future based on past experiences

Understand the risk management services provided by Audit firms in UAE
Audit firms in Dubai will perform risk management services for your business. What they will do? Let’s discuss:

Key Factors of Risk Management | Alkhadim LLC

Risk identification
Firstly, they will identify risk affecting the working of the organization. The risk identification is done through a deep study of the organization and having a discussion with the staff. The risks that are affecting the reputation of the business and harming your business needs to be concentrate first.

Risk Analyzing
After risk identification, Audit firms in Dubai will go for risk analyzing. It includes determining the consequences of risks by understanding their nature. Their impact on the goals and objectives of the company will also be studied in detail.

Risk evaluation and ranking
Risk evaluation and ranking by audit firms in the UAE will help in prioritizing them. It will help in determining the seriousness of risks and take timely actions.

Risk planning
In this step, auditors at audit firms in Dubai will make plans in response to risks identified. Plans will be according to highest to modest ranked risks. There will be plans to prevent risks, mitigate them and for contingency situations.

Monitoring and reviewing
The risks will be monitored and reviewed by audit firms in Dubai continuously so that they do not get repeated in the future. They may also guide the management to ensure compliance of internal controls to avoid the occurrence of risks again.

How to prepare a risk management plan?
Who will prepare a risk management plan?? Audit firms in UAE will frame the best plan for your business to mitigate the risks. The risk management plan will determine the risks prevailing, study its impacts and take necessary measures to handle them. Let’s discuss how risk management plan is framed by audit firms in Dubai:
•    The risks identified will be recorded in risk registers. A detailed list of all risks will be maintained.
•    The level and impact of risks will be analyzed. A measure should be set for timely analyzing the risk before it’s too late to take action.
•    The team of audit firms in UAE will do the deep study of the risks and identify the triggers that will work for those risks to be controlled.
•    The next step is finding the right solution where the team of the audit firms in Dubai will come together to do detailed discussions. They need to take collective action against those risks otherwise it will harm the organization.
•    After finding a collective solution, a plan is framed by audit firms in UAE where all risks will be documented with respective solutions to use them in the future.
•    After framing an effective plan, risk registers will be monitored and reviewed regularly so that changes can be implemented according to changes in circumstances.

Risk management types
There are various types of risk management managed by audit firms in UAE that are discussed one by one:
1.    Enterprise risk management
2.    Quantitative risk management
3.    Market risk management
4.    Bank and Currency risk management
5.    Credit risk management
6.    Operational and Financial risk management
7.    Software and IT risk management
8.    Technology risk management
9.    Project risk management
10.    Integrated risk management
11.    Commodity risk management

Techniques or Strategies of risk management
Risk management and assessment need certain strategies so that their reoccurrence can be prevented. This is done by audit firms in Dubai. They are responsible for implementing strategies that will not only assess risk but will reduce their impacts. The risk register is prepared that needs to be revised at regular intervals and that will be used for future reference. Following are the techniques that will manage risks prevailing in the organization:

Risk avoidance
Risk should be avoided to the maximum extent in order to manage it. Business can avoid risky situations or activities that carry any kind of risk.

Mitigation of risk
Risk can also be managed by mitigating or reducing it. The effort is made on reducing the negative impact of risk audit firms in Dubai are trying to mitigate.

Transfer of risk
Risk can also be managed by transferring it away

Acceptance of Risk
Certain risk level is accepted by every organization provided profitability is more than its potential risk level.

 Risk management and assessment are the essentials of every organization without which business may get fail. Risks provide great harm to the organization. Hence, it is necessary to keep the organization away from such a threat.

Essential tasks for financial Audit in 2019 and their processes

Essential tasks for financial Audit in 2019 and their processes | Alkhadim LLC

Are you worried about your business financial flow? Are you in a doubt regarding future prospects of your business? You are not able to find loopholes in your business?

Financial audit by Audit firms in UAE is the solution for you. The financial audit will keep track of financial flow and future growth prospects of your business. As a business owner, it is a good chance to boost your profits through a financial audit. Hire any good Audit firm in Dubai and improve your business growth prospects.

How will you prepare yourself before the audit?

•    You need to communicate the plan to employees who are associated with this task.

•    There should be proper alignment between accounting and reporting statements

•    All fixed assets used in the business must be properly recorded in books

•    All the statements should be recorded digitally for better auditing

•    The expenses incurred must be recorded under the right category

•    Books should be closed every month to tally the balances properly

Essential tasks for financial audit by Audit firms in UAE

Audit Firms in UAE | Alkhadim LLC

Ø  The organization, communication, and planning:
BY planning we mean that the financial stability of the business must be planned in advance by the owner of the business before audit firms in Dubai are called for an audit. Along with planning proper communication is required with the person concerned. The communication needs to be done in advance. The idea of the financial stability of your business can be made through account receivable, inventory receivable, accounts payable, accrued expenses, and cash. Everything must be properly organized.

Ø  Studying financial records:
Before going to the audit firms in Dubai for financial audit, it is always better to review internally. This way half of the loopholes can be detected before the audit and necessary steps can be taken to fix them. Now you will say it will waste a lot of time but as a business owner, one must have a clear idea about their business numbers. It will help you in future when external auditor sent by audit firms in UAE will ask you questions about the financial figures of your business.

Ø  Documents must be handy
Before the audit process is started by Audit Firms in UAE, you must ensure that all significant records are kept in hand. Let’s discuss how you can keep your documents ready:

• The general ledger must be updated till date
• The trial balance must be completed
• Financial statements audited internally must be ready
• Other documents such as bank statements, inventory records, account receivables, etc. must be up to date
• Fixed assets record must be properly maintained.
• A proper schedule of liabilities, expenses, loans and trade payables and accrued liabilities must be kept ready
• There is a corporate minute book, stock certificate book, insurance policies, canceled checks, invoices, and bank statements, etc. must be kept in hand.

Ø  Expense categorization must be correct
The expenses must be recorded under the right head. Their right categorization will make the work easy for audit firms in Dubai. If cost and revenues are rightly bifurcated, it will help the audit firms in UAE to track the finances and prevent any mishappening. Along with expenses fixed asset categorization is also necessary. They are a significant part of your business. The digital records of fixed assets with the right values must be maintained. The financial auditor will get a better idea about business if digital records are maintained.

Ø  The habit of books closing
The books of the business must be closed every month as a good practice. Audit firms in Dubai recommend the same to keep proper track over financial records. The frauds can also be easily detected if there is a practice of monthly closing of books.

Ø  Documentation by audit firms in the UAE
The auditor must provide the necessary documentation after the audit process. The reports and documents provided by audit firms in Dubai will be helpful in future for gaining a reputation in the market, making improvements and building trust among investors.

Why financial audit is suggested by Audit firms in UAE?
Business owners may not find it viable to spend money on it but it has become a demand for today. A financial audit is necessary for increasing the comfort level of shareholders and investors. The investors will trust more if your business is audited. They will get an accurate picture of the performance of your business.

Now Let’s discuss the benefits financial audit will give in 2019

•    Your business can be uplifted to the next level and your future growth prospects will increase

•    Your business goodwill will increase and market targets can be achieved quickly with the help of financial audit if conducted by a good Audit firm in UAE

•    Many investors will get attracted to your business. In other words, the chances of acquiring your business will be more if your business is audited by reputed audit firms in Dubai

•    Tax-savings can be achieved easily through financial audits as the professionals of audit firms in UAE will guide you where to invest.

•    You will get numerous and profitable opportunities if you are thinking of selling your business. This is because the audited business has more demand these days that too if audited by Professional audit firms in Dubai.

•    Your future costs can be saved through a financial audit.

Only professional audit firms in UAE must be hired to get your business audited. The experts will not only do a proper audit of your business but they will also guide you for future benefits.

Why only experienced audit firms in Dubai is recommended? Well, we will discuss one by one:

The financial statements will get error-proof as their work is to find loopholes that are doing harm to your business.
The frauds prevailing in business can also be identified timely. Fraud investigation audit is the best way to detect hidden frauds.
They will open opportunities for fundraising for your business. This is because financial audit will ensure compliance of auditing standards and financial institutions and banks lend loans to such businesses very easily.
Free zones in UAE demands a license for business running and with audited financial statements by audit firms in UAE renewal of license becomes easy. They demand a financial audit report for renewal
You can use a financial audit report even to settle insurance claims in case of unforeseen events.
Your business credibility and viability will be improved through auditing by reputed and professional Audit firms in Dubai.
Internal Control procedures can be better adapted with the help of an audit.

You must be thinking about what they do during the audit process?? Let’s discuss one by one:
They will ask you the necessary documents that will be helpful in the audit process.
After gathering documents, they will call a meeting with management and key employees. This meeting will discuss the scope of the audit and time frame in which the audit is completed.
The next step is planning. It includes steps taken while conducting the audit. Audit firms in Dubai will organize a risk workshop that will recognize all type of problems. This workshop is helpful in framing the audit plan.

Audit firms in UAE will conduct field work after planning. It is required to study procedures followed by business. It will also review internal controls that will ensure that all procedures carried out are in compliance with regulations.
The next step is reporting. All the findings made by audit firms in Dubai such as problems related to posting, mathematical errors, and other matters looked in the audit process will be included in the report. The report will not only discuss problems, rather it will suggest the right solutions to those problems too.
The last step is the report discussion and for that, a meeting is arranged with the management. Many issues are resolved in that meeting only through discussion. Audit firms in UAE will also provide valuable suggestions that the company can adapt to avoid such mistakes in the future.
The financial audit has gained importance a lot in 2019. Business owners have become more conscious and auditing have become a significant process for their business. Their business will not grow if there is no auditing process. Moreover, in 2019 the UAE government has made compulsory for businesses to prepare an audit report. The professional audit firms in Dubai will make everything comfortable for you.

Increase the growth prospects of your business through auditing. Your risks and frauds will be detected timely and can be avoided in the future. How? Audit firms in UAE will guide you in that.

The audit firms in Dubai have increased in numbers. The reason is increasing awareness of the benefits of the audit. Every business wants a professional to carry out the audit process. The reason is they have knowledge and expertise.