One characteristic of flowcharts in risk management is that they:

Flowcharts in risk management serve as valuable visual tools that help illustrate the interdependencies within a firm. They map out processes, highlighting how various components or departments interact and affect one another. This visualization of relationships and workflows allows risk managers to identify potential risks that could arise from these interdependencies, making it easier to develop comprehensive risk management strategies.

In contrast, providing detailed legal advice is not a primary function of flowcharts; they are more focused on process visualization rather than legal interpretation. Similarly, while flowcharts can help in understanding processes, they do not automatically identify new exposures or risks; such insights require a more in-depth analysis that goes beyond what a flowchart presents. Lastly, flowcharts are not designed to show the frequency of processes, as their main purpose is to detail the sequence of steps and decisions rather than quantify how often these actions occur.

Thus, the ability of flowcharts to effectively illustrate the interdependencies within a firm is a significant reason why they are widely used in risk management practices.