What should be provided if inconsistencies in risk ratings are identified?

When inconsistencies in risk ratings are identified, providing proper documentation is essential because it serves as a formal record of the identified issues. Proper documentation ensures that there is a clear and traceable rationale behind the discrepancies, which can include the analysis of data, methodologies used, and the context surrounding the risk ratings. This is crucial for maintaining transparency and accountability within the organization.

Documentation is also important for follow-up actions. It helps stakeholders understand the nature of the inconsistencies and provides a basis for any further investigation or remediation efforts. In addition, comprehensive documentation can be useful during audits or reviews, as it demonstrates that the organization has a systematic approach to risk assessment and management.

While explanations to senior management or reports to the compliance team are necessary steps to communicate findings, without proper documentation, those discussions lack the necessary support to substantiate the issues presented. Similarly, revising the audit methodology might be considered in the long term, but addressing the immediate inconsistencies requires a documented approach to ensure all parties are on the same page regarding the specific details of the risk ratings in question.