LO 69.4: Describe risk monitoring and its role in an internal control environment.

LO 69.4: Describe risk monitoring and its role in an internal control environment.
Within an entitys internal control environment, risk monitoring attempts to seek and investigate any significant variances from budget. This is to ensure, for example, that there are no threats to meeting its ROE and RORC targets. Risk monitoring is useful in that it should detect and address any significant variances in a timely manner.