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This part is all about how organizations identify, assess, and manage risks. The paper would cover how companies identify potential risks, like financial risks, operational risks, and compliance risks. Then, you will likely get to know how they assess the potential impact and likelihood of those risks. Questions about **internal control systems** would assess your knowledge of different types of controls, like preventive controls and detective controls. You'll need to know about key frameworks like **COSO** (Committee of Sponsoring Organizations of the Treadway Commission), which provides a framework for internal control. Then, you have to describe the role of internal auditors in risk management and internal controls. This is about how auditors evaluate the effectiveness of these systems, identify weaknesses, and make recommendations for improvement. Internal auditors play a critical role in providing assurance to management and the board of directors that the company's risk management and internal control systems are effective and that risks are being adequately managed. The paper would cover the following: *Risk Assessment Methodologies*, *Types of Internal Controls*, and *COSO Framework*.
