Risk Control Matrix (RCM) Services
What is a Risk Control Matrix (RCM)?
A Risk Control Matrix is a structured document that:
Identifies key business processes
Lists associated risks
Maps existing internal controls
Defines control ownership
Evaluates control effectiveness
It connects risk to control, ensuring nothing critical is left unmanaged.
Why Your Business Needs an RCM
Without a defined control framework, businesses face:
Revenue leakage
Fraud risk
Regulatory non-compliance
Inefficient processes
Weak audit trails
An RCM creates clarity. It makes control gaps visible and measurable.
Our RCM Services Include
1. Process Understanding & Risk Identification
We begin by studying your:
Finance processes
Procurement cycle
Sales and receivables
Inventory management
Payroll and HR controls
IT systems and access controls
We identify operational, financial, and compliance risks specific to your business model.
2. Control Mapping & Documentation
We map:
Preventive controls
Detective controls
Manual controls
Automated system controls
Each risk is linked to an existing control or flagged as a control gap.
3. Control Design Evaluation
Not all controls are effective.
We assess:
Whether the control addresses the risk adequately
Frequency of control execution
Responsibility and ownership
Documentation and evidence
If weaknesses exist, we redesign the control framework.
4. Gap Analysis & Recommendations
We provide:
Risk exposure summary
Control deficiency report
Action plan with timelines
Responsibility matrix
This gives management a clear roadmap to strengthen governance.
5. RCM for Internal Audit & Compliance
A structured RCM supports:
Internal audit planning
Statutory audit preparedness
IFC compliance under the Companies Act
SOP development
Fraud prevention frameworks
It becomes the backbone of your internal control system.
Key Areas Covered in Risk Control Matrix
Revenue recognition controls
Expense authorization controls
Bank reconciliation controls
Vendor onboarding controls
Fixed asset controls
Inventory movement controls
IT access management
Compliance tracking
Who Should Implement an RCM?
Growing mid-sized companies
Companies preparing for IPO
Businesses expanding operations
Organizations strengthening internal audit
Companies facing recurring audit observations
Benefits of a Strong RCM Framework
Reduced fraud and financial misstatements
Improved accountability
Better regulatory compliance
Stronger governance structure
Higher investor confidence
Smooth audit process
An RCM doesn’t just reduce risk. It improves discipline across the organization.
Our Approach at N D Savla & Associates
We don’t deliver generic templates.
Our approach is:
Business-specific
Industry-aligned
Practical and implementable
Audit-focused
Compliance-driven
We design RCMs that management teams can actually use, not just file away.
F.A.Q.
It is not mandatory for all businesses, but it is highly recommended for companies with internal audit, regulatory exposure, or growth plans.
Ideally annually or whenever there is a major change in business processes.
No. Even mid-sized businesses benefit significantly from structured control documentation.
Yes. It simplifies audit processes and reduces last-minute compliance pressure.
