Kral Ussery LLC, Certified Public Accountants
TX Office: (817) 416-6842
NV Office: (702) 565-2727

Risk Assessments

Transforming risks into opportunities through:

  • Independent Risk Assessments
  • COSO’s ERM – Integrated Framework
  • Data Assessments, including Cybersecurity
  • Information Flows & Decision Making Process
  • Integration to align people, process and technology
  • Due Diligence and Quality of Earnings Reports
Getting Close To The Edge Can Be Daunting But The View Is Better

Risks and Opportunities are Two-Sides of the Same Coin

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) published its Enterprise Risk Management - Integrating with Strategy and Performance (ERM) framework in 2017 to help organizations identify and manage the ambiguity, complexity and volatility of their business world.  The COSO ERM Framework defines risk as the possibility that events will occur and affect the achievement of strategy and business objectives. All organizations face uncertainty, but not all confront their risks and opportunities head-on thus jeopardizing shareholder value.

Kral Ussery offers an array of independent risk assessment services ranging from organizational-wide to specific operating, compliance or reporting objectives. This provides both the boardroom and management with an objective glimpse into both internal and external risks and opportunities. We can also assist in developing a robust risk management program including a strong fraud risk management component and cybersecurity component. 

COSO’s Enterprise Risk Management - Integrating with Strategy and Performance (ERM) framework

We leverage COSO’s ERM Framework, which consists of the following five components, as well as twenty supporting principles:

  1. Governance and Culture
  2. Strategy and Objective-Setting
  3. Performance
  4. Review and Revision 
  5. Information, Communication, and Reporting
It is important to remember that ERM is more than simply identifying risks, but also actively managing the risks.  It addresses more than controls as it also covers each of the five components.  ERM is a system for identifying risks and opportunities, as well as managing and monitoring them in an effort to maximize shareholder value.  ERM deployment allows for integration of all business aspects.  Successfully executing an ERM process will allow an organization to:
    • Identify risks and opportunities through an inventory process
    • Develop a structured decision-making process allowing for faster and higher quality decisions
    • Define a risk appetite
    • Understand risk tolerance
    • Minimize operational surprises and losses
    • Improve accountability and responsibility through clear roles and coordination
    • Identify and manage cross-enterprise risks
    • Actualize desired cultural behaviors
    • Develop integrated responses to multiple risks and opportunities
    • Improve deployment of capital

Due Diligence and Quality of Earnings Reports

Providing independent advisory and internal assurance services strikes at the heart of why Kral Ussery exists. We believe it is in the best interest of our clients to hear candidly our conclusions rather than marching towards some predetermined conclusion without any real insights. This attitude is central to our due diligence efforts, including quality of earnings reports. A quality of earnings report is not an audit where the emphasis is on the balance sheet rather than on the economic earnings power of the going-concern. Rather a quality of earnings report provides a detailed analysis of a company's revenue and expense components. The primary objective is to assess the sustainability and accuracy of historical earnings, as well as the achievability of future projections.

Our approach is to view each quality of earnings engagement as if we were investing our own money into the target and validating our investment thesis.  In performing our analysis, we identify areas that could impair the utility of historical earnings in assessing prospects for the future.  The quality of earnings can generally be summarized as the degree to which earnings are cash or noncash, recurring or nonrecurring, and based on precise measurement or estimates that are subject to change. In order for an earnings measure to be considered ‘high quality’ it must reflect commercial cash flows that are sustainable. Call upon the next time you are in need of due diligence efforts.

A Summary of Risk & Opportunity Assessment Services

Our risk assessment knowledge and tools can help you unlock previously unknown opportunities to protect and grow shareholder value. Contact us now to learn how to start.

    Risks & Opportunities
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