Requirements for the audit of risk management systems

IDW PS 981

Well thought-out risk management is essential in order to identify and assess potential risks at an early stage and take targeted countermeasures. The IDW PS 981 auditing standard from the Institute of Public Auditors in Germany defines clear principles and requirements for auditing risk management systems (RMS). In this article, we highlight the key aspects of the standard, its relevance for companies and how it can be implemented in practice.

What is the IDW PS 981?

IDW PS 981, published by the Institute of Public Auditors in Germany (IDW), provides a basis for auditing risk management systems. The aim of the standard is to ensure that companies have an appropriate and effective RMS that meets the requirements of corporate governance.

Objectives of IDW PS 981:

  • Checking whether the RMS is suitable for identifying risks at an early stage
  • Evaluation of the effectiveness of risk management and assessment
  • Checking compliance with legal requirements and internal guidelines
The standard is aimed in particular at companies whose RMS is an integral part of their corporate governance systems.

Structure and contents of IDW PS 981

IDW PS 981 is divided into several sections that define the requirements and procedures for auditing RMSs. The most important points include

1. framework conditions and principles: The standard describes the framework conditions for setting up and auditing an RMS. This includes principles such as risk culture, risk assessment and risk management.

2. subject matter and audit approach: IDW PS 981 specifies which elements of an RMS are audited. These include

  • Identification and assessment of risks
  • Documentation and communication of the results
  • Monitoring by the Supervisory Board
3. checking the implementation: The implementation of an RMS must be comprehensible and effective. Here, the auditor checks whether the governance, compliance and risk management requirements are met.
4. reporting: The standard specifies how the results of the audit are to be documented in order to create transparency for management and the Supervisory Board.

Why is IDW PS 981 important for companies?

A functioning RMS helps companies to identify and manage risks at an early stage. Compliance with IDW PS 981 offers several advantages:

  • Legal certainty: companies meet legal requirements and reduce liability risks
  • Transparency: Clear structures and processes improve traceability for stakeholders
  • Efficiency: A well-implemented RMS optimizes the use of resources
In addition, compliance with the standard increases the acceptance of risk management systems within the company.

Implementation of IDW PS 981 with antares RiMIS®

Our risk management software antares RiMIS® offers the ideal solution to fulfill the requirements of IDW PS 981. With antares RiMIS®, companies can:

1. systematically record and assess risks: with the help of a user-friendly interface and powerful tools.

2. ensure transparency and traceability: All data is documented centrally and is available for audits at any time.

3. optimize risk management: Through automated processes and seamless integration into existing systems.

Advantages of antares RiMIS®:

  • Adaptation to the individual requirements of your company
  • Adherence to compliance and governance standards
  • Efficient reporting for the Management Board and Supervisory Board
  • Monitoring risks with dashboards that are updated in real time
  • Automatic reporting and user-defined workflows for risk management
The implementation of antares RiMIS® not only supports compliance with IDW PS 981, but also offers advantages in the daily work with your RMS. Functions such as the integration of KPI dashboards or adaptation to industry-specific requirements make antares RiMIS a flexible and future-proof solution.

Visit our product page at antares RiMIS® for further information and a free demo.

Challenges in the implementation of IDW PS 981

Implementing an RMS that meets the requirements of IDW PS 981 can be complex. Companies often face the following challenges:

  • Lack of resources: The introduction of an RMS requires time and expertise.
  • Changing the corporate culture: An effective risk culture requires the commitment of management and employees.
  • Technological hurdles: The integration of new systems into existing IT landscapes can be complex.
These challenges can be overcome with a software solution such as antares RiMIS®, as it is specially tailored to the needs of modern companies. Automated processes and an intuitive user interface facilitate integration and reduce the amount of training required for employees.

Best practices for auditing in accordance with IDW PS 981

To ensure that the audit in accordance with IDW PS 981 is successful, companies should observe the following best practices:

1. early preparation: ensure that all relevant processes and documents are in place prior to the audit.

2. regular training: Sensitize employees and management to the importance of an RMS.

3. continuous improvement: use the results of the audit to further develop your RMS.

4. use modern tools: software solutions such as antares RiMIS® enable effective implementation of the requirements.

Conclusion: IDW PS 981 as an opportunity

IDW PS 981 provides companies with valuable guidance for establishing effective risk management. With the right software solution, companies can efficiently implement the requirements of the standard and optimize their risk management at the same time.

Take the opportunity to find out how antares RiMIS® can help you take your RMS to the next level. Contact us for a personal consultation or to arrange a demo.

FAQ - the most important questions about IDW PS 981

IDW PS 981 is an auditing standard of the Institute of Public Auditors in Germany (IDW) that describes the requirements for auditing risk management systems.

It helps companies to ensure the quality of their RMS and to fulfill legal and regulatory requirements.

Announcements serve as guidelines for the implementation and audit of RMS in accordance with IDW PS 981.

antares RiMIS® offers a comprehensive software solution that is specifically designed to meet the requirements of IDW PS 981. Functions such as automated reporting and adaptation to industry-specific requirements facilitate practical implementation.

A common mistake is the lack of documentation and communication of risks within the company.

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We will answer your questions and ensure that you get to know our software in detail. We will be happy to show you the solution to your individual requirements. If you wish, we can then present our software's range of services to you, live and direct, via a web session or in person at your premises.