Analysis of Risk Management Department Centralization Initiative in Audit Project-oriented Company

This study is devoted to research of an organizational structure of quality and risks management department with the purpose to decrease costs and increase competitiveness of the company in the audit services market. Best practices for functional centralization and shared services centers establishment were analyzed within the study, author also analyzed the risks associated with the implementation of this initiative and proposed measures to respond to these risks. In addition, a statistical analysis of the audit projects registry was carried out to determine the impact of the functional centralization on the target key performance indicators of the audit projects: time deviation, price deviation, project margin and customer satisfaction; and to confirm working hypotheses of the study. At the last stage of the study, the business processes of the quality and risks management department were analyzed, the target organizational structure was proposed, the target location for centralization of the department was chosen and the economic effect of the project implementation for the company was calculated.