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96 CA Sri Lanka Integrated Annual Report 2024

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 Fluctuating Student Enrollment High Revenue stream diversification through multiple
income sources
Fluctuations in interest rates High Diversification strategies that reduce a portfolio’s
effective duration
Cost Overruns Medium Cost control measures through strict spending
policies and regular expense audits
Operational IT system failures High Regular system audits and updates Backup and
Risks recovery procedures in place
Quality Control Issues High Standardized quality control procedures through
regular audits and assessments
Dependency on Key Personnel Medium Operational resilience through flexible operating
model
Regulatory Changes in Laws and Medium Continuous monitoring of regulatory changes
Risks Regulations
Proactive compliance measures to meet regulatory
requirements
Possible non-compliance with High Establishment of compliance frameworks
regulatory standards
Regular training programme 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