7.02
Risk Assessment
Principle 7 - Identify, Analyze, and Respond to Risks
Attribute 7.02 - Management identifies risks throughout the entity on a periodic and ongoing basis to provide a basis for analyzing risks. Risk is the possibility that an event will occur and adversely affect the achievement of objectives. Risk assessment is the identification and analysis of risks related to achieving the defined objectives to form a basis for designing risk responses. Periodic risk assessments are performed at specific times and at regular intervals, such as annually. Management considers entity objectives, risk tolerances, and other factors when determining the scope and frequency of these assessments. Ongoing risk assessments are performed as needed, on a real-time basis, such as when significant internal or external change occurs or significant emerging risks are identified. Management also considers performing ongoing risk assessments when internal control deficiencies, improper payments, potential fraud, or information security breaches are detected.
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Jamie's Story
The contract changes made from 2020 through 2022 were implemented during the Covid-19 pandemic, which public health mandates. From 7.02, this phrase applies, "Ongoing risk assessments are performed as needed, on a real-time basis, such as when significant internal or external change occurs or significant emerging risks are identified." The pandemic may have necessitated changes, but it's not noted in the contract. Nor is there any evaluation that the changes to the contract had been evaluated for impact on risk.
Election Anomalies
Principle 7 addresses the need to Identify, Analyze, and Respond to Risks. The identification and analysis of risk are presumed to have been performed at the state level, which are addressed in the Arizona Secretary of State's Election Procedure Manual. The MC leadership team's Response to Risk is the primary governance weakness with respect to the Green Book's Principle #7, including this attribute.
Governance issues identified from Arizona Attorney General's Office 2020 General Election Investigation of Arizona Senate allegations of Maricopa County Election Department - Drop Box Collections issues. Section 2 of the AZ AG's inspector's report identifies numerous issues, which present risk to potential fraud.
This attribute specifically states, "Ongoing risk assessments are performed as needed, on a real-time basis, such as when significant internal or external change occurs or significant emerging risks are identified." External changes consisted of Public Health mandates associated with the Covid-19 pandemic. Rather than implement risk reduction actions, MC management appeared to ignore procedure requirements, which actually increased the risk of fraud. The following issues identified in the inspector's report are related to management actions or inaction related to increasing the risk of fraud:
- See the heading Deviation: Missing Entries on Election Forms from Maricopa Dropbox Collection (2020) webpage.
- See the heading Deviation: Missing Ballot Counts from Maricopa Dropbox Collection (2020) webpage.
- See the heading Deviation: Used Email instead of EVBTS Forms from Maricopa Dropbox Collection (2020) webpage.
- See the heading Deviation: Unfulfilled Party Representation Requirements for Couriers from Maricopa Dropbox Collection (2020) webpage.
- See the heading Deviation: Fictious Addresses in MC Voter Registration Database from Maricopa Dropbox Collection (2020) webpage.
- See the heading Deviation: Allegations Confirmed from Maricopa Dropbox Collection (2020) webpage.
- See the heading Noteworthy: Consequences Unknown from Maricopa Dropbox Collection (2020) webpage
- See the heading Noteworthy: Transmission of USPS Data to MC and Runbeck from Maricopa Dropbox Collection (2020) webpage
