The Defense Logistics Agency is working to implement the Office of Management and Budget’s policy mandating the integration of risk management and internal controls throughout the agency.
DLA said Tuesday it will establish a new team in an effort to comply with OMB’s Circular A-123, which calls for the implementation of enterprise risk management throughout the agency. The ERM process includes risk identification, internal controls execution and continuous monitoring and testing.
“Our goal going forward is to establish a methodology for identifying our risks and prioritizing them so we can determine the best ways to reduce or mitigate them,” said Col. Scott Ritzel, chief risk officer of DLA and head of the 14-person ERM team.
Previously, independent auditors found gaps in DLA's risk management framework that would leave the agency vulnerable to cyber attacks and fraud. Ritzel’s team intends to conduct A-123 workshops to help train DLA’s employees on ERM and internal controls.