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Risk Criteria methodology is the technique used by various companies to determine their risks and take steps to reduce them. The methods used by different companies are different, as some of them are focused on identifying their risks while some focus on minimizing their risks. For example, risk assessment methodologies that deal with identifying risks are much different from those that deal with reducing risks.
The Risk Analysis Methodology (RAMP) Template describes more in details the risk analysis process in a section of the Good practice Internal Audit Manual Template, specifically: In the Risk Analysis Methodology, you will design a series of tables which provides the analysis of risk, the identification of various risk categories, and the assignment of an appropriate score to each risk category, as well as the calculation of a probability that a specific event will occur. The purpose of these tables is to help the auditors understand the various risk categories better and determine whether a certain risk category will result in a particular event. These tables have been created using the concepts of statistical mechanics and the theory of likelihood.
