Manage Customer Orders: Sales Approval Process Risk and Control Matrix (RCM)

A successful risk management strategy requires a strong internal control environment. The risk control matrix (RCM) format emphasizes that strong and risk-oriented internal control environments are often optimized with automated/manual controls, depending on the situation.

An RCM provides an overview of different control objectives that organizations should take into consideration and the corresponding controls to safeguard the company against risks, which may arise if not checked timely. Once customized to an organization, this document can help the user in assessing each control. The control assessment can then also be summarized to develop an action plan.

This document outlines risks and controls common to sales approval during the 10.4 Manage Customer Orders process in a risk control matrix (RCM) format.

Sample risks include:

• All required elements (for each product or service) are not entered into the system to accurately provision services/bills to the customer.
• Contracts are executed with unfavorable pricing, terms and conditions.
• Customer orders are generated at prices and terms that are different from the customers’ understanding or agreement.
• Customer rate/contract quotations are inaccurately reflected in the service orders.
• Customer service orders requiring exception handling are not identified and processed in a timely manner.

This document can be used as a sample RCM and is not meant to be an exhaustive list of risks and controls. The KnowledgeLeader team will periodically update this RCM with new content. Organizations should select, update and modify the risks and controls included in this document to ensure that it reflects business operations.