Germany’s IDW PS 340 Auditing Standard: Understanding Risk Correlation
Risk management is an evolving discipline, especially in today’s interconnected world, where risks are no longer isolated. They often have cascading effects, where one risk can trigger or amplify others, leading to potentially significant consequences. This recognition is at the heart of Germany’s IDW PS 340 auditing standard, particularly emphasizing risk correlation—how risks are interrelated and can influence each other. The standard has become an essential part of the audit and risk management landscape, helping organizations fortify their risk management systems to withstand the growing complexity of risk scenarios . . .
[The rest of this blog can be read on the CALPANA Crisam blog, where GRC 20/20’s Michael Rasmussen is a Guest Blogger]