The document outlines the risk management plan of Patac's sari-sari store. It identifies key risks like theft and poor accounting records. It details roles and responsibilities of the owner and employees to identify, assess, control, and review risks. The owner is responsible for establishing a risk management culture while employees must follow rules and contribute to risk management systems. The plan also provides a risk rating scale and describes risk management activities like control and assessment.
The document outlines the risk management plan of Patac's sari-sari store. It identifies key risks like theft and poor accounting records. It details roles and responsibilities of the owner and employees to identify, assess, control, and review risks. The owner is responsible for establishing a risk management culture while employees must follow rules and contribute to risk management systems. The plan also provides a risk rating scale and describes risk management activities like control and assessment.
The document outlines the risk management plan of Patac's sari-sari store. It identifies key risks like theft and poor accounting records. It details roles and responsibilities of the owner and employees to identify, assess, control, and review risks. The owner is responsible for establishing a risk management culture while employees must follow rules and contribute to risk management systems. The plan also provides a risk rating scale and describes risk management activities like control and assessment.
The document outlines the risk management plan of Patac's sari-sari store. It identifies key risks like theft and poor accounting records. It details roles and responsibilities of the owner and employees to identify, assess, control, and review risks. The owner is responsible for establishing a risk management culture while employees must follow rules and contribute to risk management systems. The plan also provides a risk rating scale and describes risk management activities like control and assessment.
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1of 5
Name: Jeth A.
Mahusay Subject: Risk Management and Internal Control
Instructor: Ms. Anna Mae Magbanua, CPA Date: May 2021
Risk Management Framework Documentation
Risk Management Plan Intentions and Directions Patac's sari-sari store intends to be prepared for the identified risk by devising a viable strategy to mitigate the risk. By recognizing, assessing, and managing risk, it intends to remove any potential danger. Risk Management Purpose/Objectives The main objective of Patac’s sari-sari store risk management plan is to identify the risk, assess and manage it responsibly with the supervision of the owner of the store and the cooperation of the employees in eliminating the risk. Key Roles and Responsibilities The risk management plan's duty and job is to guarantee that the risk prevention solution is effective in removing the risk. Risk Management Governance Arrangements All employees are expected to obey the regulations, and each is given a specific task to complete in order to manage the risk. Procedures Following the identification and evaluation of the risk, the execution of risk prevention is carried out. There are different risk that are identified in Patac’s sari-sari store namely; 1. Thievery – In this risk, the procedure will be installation of surveillance camera, be aware of high-risk items, and train your employees to be on the lookout for theft, highlight the repercussions of theft, and interact with customers, and checking the record of camera everyday. 2. Poor Accounting Records – To audit the accounting records, every employee is obliged to document every transaction in the business. Risk Management Policy Scope of Risk Management All activities and processes related with Patac's sari-sari store's normal operation are covered by this policy. Strategy and Approach At each stage of the risk management process, consultation with employees with relevant experience is essential. Patac's sari-sari business is more likely to recognize all risk and implement effective risk controls because it draws on the experience, knowledge, and ideas of its employees. Workers at Patac's sari-sari business must follow instructions and procedures, and they will do so more successfully if they were involved in their creation, understand why they exist, and how they work. Resources The purpose in dealing with risk and eliminating risk is the first resource to be employed in implementing risk management policy, followed by working employees and technology to implement the policy. Procedures The first step is to identify a suitable policy that will undoubtedly improve risk management control effectiveness. The second phase is to put the risk management policy into action, and the third is to assess the impact of the policy after it has been implemented. Responsibilities All owners and staff with relevant scopes of responsibility and authority are accountable for identifying, analyzing, evaluating, responding, monitoring, and communicating risk connected with any activity, function, or process. Risk-reduction strategy Patac's sari-sari store is safeguarded from any incidents that could result in the store's loss in the future. It also lowers its risk of losing money. The store's continual aim to prevent risk is to carry out its core functions, accomplish its objectives, and support the store's future. The risk to the Patac's sari-sari business and its backers has been lowered. Management Techniques All employees are taught to work in a culture where risk is always identified and avoided. Risk management's purpose and objectives were always followed. Risk Management Procedure Detailed Roles and Responsibilities Owner 1. Establish a culture that drives the risk management. 2. Ensures every employees inspires to do their part in taking the roles of risk management controls. 3. Evaluate the efficiency of the established risk management plan. 4. Make a good connection to the employees by hearing their voices of their experience in implementing risk management plan. Employees 1. Compliance of the rules and regulation in implementing risk management plan. 2. Contribute to the establishment and implementation of risk management systems for all functions and activities of Patac’s sari-sari store. Detailed Description of Process Steps 1. Identifying the risk of Patac’s sari-sari store.
Risk can be found at Patac's sari-sari store at any moment.
Employees' experience is used to identify risk. Generally, persons who are exposed to the environment are able to recognize the risk quickly.
2. Assess the Risk
Depending on the type of risk and the information, data, and
resources available, a risk assessment can be done in various levels of depth. Patac's sari-sari business assesses risk by having a conversation with the owner or using risk analysis tools and methodologies advised by safety professionals. 3. Control the Risk
Patac's sari-sari store weighs the numerous control choices and
selects the one that most effectively eliminates or reduces the risk in the given situation. This could be a single control measure or a set of measures that, when combined, give the highest level of efficacy that is reasonably possible. Some issues are simple to remedy and should be done right away, while others will require more time and forethought. Patac's sari-sari store prioritizes areas for action among those needing more work, focusing first on those problems with the highest level of risk.
4. Review Control
To successfully inspect the store and limit health hazards, quality
assurance of the control risk should be developed. Patac's sari-sari store will also solicit staff feedback to see if any changes can be done to make the store safer.
Risk Rating Scales
Likelihood Minor Significant Serious Major Fatality
of Occurrenc e Very Unlikely Slight Feasible Likely Very Likely
Very Unlikely – the risk hasn’t occurred before.
Slight – the risk rare occurs. Feasible – The risk is possible to occur but not common. Likely – The risk has occurred before, but can be occurred again. Very Likely – The risk occurs frequently. Risk management Activities Risk control refers to a collection of procedures used by businesses to assess prospective losses and take steps to mitigate or eliminate them. Risk Assessment is a phrase used to describe the total process or approach of identifying hazards and risk factors that could cause harm (hazard identification). Analyze and assess the risk posed by that hazard (risk analysis, and risk evaluation). Risk management is the process of identifying, evaluating, and prioritizing risks, then deploying resources in a coordinated and cost-effective manner to reduce the likelihood and impact of unfortunate events or to optimize the realization of opportunities.