Page 73 - CA Sri Lanka Integrated Annual Report 2023

RISK MANAGEMENT

Managing risks has become imperative for organizations to ensure resilience and sustainable growth in today's dynamic landscape
marked by rapid technological advancements, evolving business paradigms, and stringent regulatory frameworks. Recognizing this
need, CA Sri Lanka has adopted a comprehensive risk management approach to proactively identify, assess and mitigate potential risks
that could impact its operations and stakeholders.

Risk management at CA Sri Lanka is a proactive endeavour aimed at anticipating and addressing emerging risks in a timely and efficient
manner. The Institute's risk management framework encompasses a systematic process of identifying risk events, evaluating their
potential implications and implementing robust controls and safeguards to mitigate these risks effectively.

Central to CA Sri Lanka's risk management approach is the regular review and updating of risk safeguards to align with the evolving
risk landscape and organizational priorities. This ensures that the Institute remains agile and responsive to changing risk dynamics,
enhancing its resilience and ability to navigate uncertainties effectively.

By embracing a comprehensive risk management approach, CA Sri Lanka reaffirms its commitment to fostering a culture of risk
awareness and resilience, underpinning its steadfast pursuit of excellence and sustainable growth in the face of evolving challenges.

Risk Description Severity of Impact Risk Management Measures
Financial Risks Economic downturn affecting High Cost reduction measures to maintain - financial stability
income from member related Diversification of revenue sources
and students related activities
Fluctuations in interest rates High Diversification strategies that reduce a portfolio’s
effective duration
Fluctuations in currency Law Regular monitoring of exchange rates
exchange rates
Hedging strategies to mitigate currency risks.
Operational Risks IT system failures High Regular system audits and updates
Backup and recovery procedures in place
Fraudulent activities High Implementation of robust internal controls
Regular audits to detect and prevent fraud
Mismatches in Education High Successful execution of the education strategy that
strategy meets the future needs of the profession.
Dedicated education committee oversight and reporting.
Dedicated programme manager/team oversight.
Engagement of external advisers if required.
Regulatory Risks Changes in regulatory Medium Continuous monitoring of regulatory changes
requirements
Proactive compliance measures to meet regulatory
requirements
Possible non-compliance with High Establishment of compliance frameworks
regulatory standards
Regular training programmes for staff to ensure
regulatory compliance
Lawsuits and regulatory fines High Compliance training for employees
Regular legal audits to ensure adherence to laws and
regulations

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