INVESTMEN

T
RISK PLAN
 CONTENT

I. FOREWORD/INTRODUCTION
II. RISK MANAGEMENT PROCCESS
III. ORGANIZING RISK MANAGEMENT OPTION
IV. APPLICATION
V. INVESTMENT PLAN
VI. ANALYZING COMPANY
VII. MANAGING THE PORTFOLIO
VIII.PORTFOLIO ALLOCATION
IX. EXIT STRATEGY
X. COMPUTATION ANALYSIS
XI. 5 YEARS PROJECTION
 FOREWORD

Even the most carefully planned project can run into

trouble. No matter how well you plan, your project can
always encounter unexpected problems.
You can use risk planning to identify potential problems
that could cause trouble for your project, analyze how likely
they are to occur, take action to prevent the risks you can
avoid, and minimize the ones that you can’t.
 INTRODUCTION

There are too many ways to earn money. Types of Income is

divided into two categories. A. Active B. Passive Active is the
common one. Its best example is how most of the people earn
money, that is through their jobs. They will work and the company
or the government will pay them. Another example is owning and
managing a business. In simple statement, Active income is all
about earning money while exerting much effort. Passive income
is the opposite of Active. Does not require much effort. Its
examples are Rent income, Interest income or through Dividend.

So here the Investment is all about, Having passive income,

securing our financial future and improving our financial mobility
 RISK MANAGEMENT PROCESS

Managing risks is a process that includes risk

assessment and a mitigation strategy for those
risks. Risk assessment includes both the
identification of potential risk and the
evaluation of the potential impact of the risk.
A risk mitigation plan is designed to
eliminate or minimize the impact of the risk
events—occurrences that have a negative
impact on the project. Identifying risk is both
a creative and a disciplined process.
 ORGANIZING RISK
MANAGEMENT OPTIONS
 ORGANIZING RISK
MANAGEMENT OPTIONS

When you’re planning your project, risks are still uncertain: they
haven’t happened yet. But eventually, some of the risks that you plan
for do happen, and that’s when you have to deal with them. There
are four basic ways to handle a risk.

1. Avoid: The best thing you can do with a risk is avoid it. If you can
prevent it from happening, it definitely won’t hurt your project. The
easiest way to avoid this risk is to walk away from the cliff, but that
may not be an option on this project.
 ORGANIZING RISK
MANAGEMENT OPTIONS

2. Mitigate: If you can’t avoid the risk, you can mitigate it. This means taking some
sort of action that will cause it to do as little damage to your project as possible.
(CALCULATING THE RISK OF INVESTMENT WILL HELP US TO DEAL
WITH THE PROBABILITY OF GETTING THE ROI)

3. Transfer: One effective way to deal with a risk is to pay someone else to accept
it for you. The most common way to do this is to buy insurance.
(DEFAULT SWAP IS THE COMMON WAY TO HAVE INSURANCE ON
INVESTMENTS)
4. Accept: When you can’t avoid, mitigate, or transfer a risk, then you have to
accept it. But even when you accept a risk, at least you’ve looked at the
alternatives and you know what will happen if it occurs. If you can’t avoid the risk,
and there’s nothing you can do to reduce its impact, then accepting it is your only
choice.
 APPLICATION

So the first thing to do is to decide where to invest after

gathering to many info.
Then We Decided to invest on agriculture as we learn that
lending farmers a money to get a part of their land will
benefit us so much,
The common deal and ROI is here.
20,000= 15 sacks of rice after 4-5months and 15 sacks is
equivalent to 5,000-7,000 pesos. In average, its 6,000
pesos.
6,0000 = x
20,000 100 = 30% in just a quarter of a year.
 INVESTMENT PLAN

Our Plan is all about investing in the most efficient way. But
theres a compromise. Being Employed as civilian or enlisted
personnel in AFP. Thats my own plan (me) because I want to
become an officer. Investing it in a multi-awarded cooperative
The PAFCPIC. and in Composite Wing Savings and Loan
Association, Inc. (CWSLAI) Then buying stocks in Procter and
Gamble Co
A. PAFCPIC= 10,000
B. CWSLAI= 10,000/month (preparing 1yr)
C. Left is Going to P&G which is (890,000)

Each year we will take 120,000 from our stocks in P&G to

reallocate it on CWSLAI
 COMPANY ANALYSIS

A.) PAFCPIC is the first institution-based category winner of

Gawad para sa Pinakatanging Kooperatiba (Gawad PITAK) of the
Land Bank of the Philippines in 2004. It was the first cooperative
recognized for Family Welfare and Community Development in
2004 and for Labor-Management Relations in 2013 under the
Search for Model Companies by the Department of Trade and
Industry (DTI) Center for Industrial Competitiveness. It was also
the first cooperative to have been bestowed the Philippine Quality
Challenge Level 2 Award in 2015 by the DTI Competitiveness
Bureau in partnership with the Philippine Society for Quality Inc.
Main Office: PAFCPIC Building, Bayani Road, Fort Bonifacio,
Taguig, 1634 Metro Manila PAFCPIC is currently registered with
the Cooperative Development Authority (CDA) under Registry
Number 9520-16000421 dated 16 October 2009.
 B.) The Composite Wing Savings and Loan Association, Inc. (CWSLAI)
started its humble beginning as a group thrift savings or "paluwagan" of
military and civilian personnel of the 205th Tactical Operations Wing
(TOW), Philippine Air Force (PAF) at Nichols Air Base (now Col. Jesus
Villamor Air Base), Pasay, Rizal with only 200 members and a capital base
of five thousand pesos (P5,OOO.OO) only. The Filipino culture of engaging
in group "paluwagan" as a form of savings increased its patronage that
gradually grew and expanded its membership. Its growth eventually
transformed into a savings and loan association, now known as the
Composite Wing Savings and Loan Association, Inc. The distinguished
records of performance, efficiency and growth in the industry is truly
acknowledged by the Confederation of Non-Stock Savings and Loan
Associations thru the major awards and recognitions bestowed to CWSLAI
every year. Notable of which were the major awards conferred in 2002,
2012 and 2013 as the Savings and Loan Association of Year. Main Office:
CWSLAI Bldg., Bayani road, Cor A. Luna, Taguig
 C.) The Procter & Gamble Company (P&G) boasts billion-
dollar brands for home and health. The world's largest
maker of consumer packaged goods divides its business
into five global segments that comprise its vast portfolio of
hair, skin and personal, oral, family, feminine, and baby
care product lines.
 PORTFOLIO
MANAGEME
NT
Arithmetic Mean (P&G)

Yearly Initial Price

From December 2014-January 2019

90.38+79.41+84.08+91.88+91.18
5

=87.40
 Current Year Monthly Initial Price
(Decemer 2018-November 2019)

91.18+93.60+100.25+104.05+105.86+102.91+109.65+114.73+120.23+1
24.57+123.25+122.06
12
=109.36
 From Price most downfall in
May 04,2018
With price of
72.43USD

To its current price

November 20,2019
With price of
122.06USD

The Acceleration is =
(Current Price-Lowest Price)/(Months bet. Those year)
(122.06-72.43)/(18)
=2.75USD per month
 PORTFOLIO ALLOCATION

COMPANY KINDS OF PRICE OF NO. OF AMOUNT

INVESTMEN SHARES SHARES
T

PAFCPIC DEPOSITS 10,000php

AND
ACCOUNT
S
DEPOSITS
CWSLAI AND 10,000php/
ACCOUNT month
S (120,000/ye
ar)
STOCKS
P&G 6,225php 139 865,283.34
 EXIT STRATEGY

Depositing in PAFCPIC with 10,000php with 22% annual

interest rate.

Depositing in CWSLAI with 10,000php/month

120,000php/year with 16% annual interest rate.

Buying stocks in P&G with price of 6,225php/share

buying 139shares amounting 865,283.34php.
Pafcpic And Cwslai Have Consistent Interest Rate

NAME APPRAISAL DIVIDENDS

RATE
PAFCPIC 22%/annual N/A
CWSLAI N/A 16%/annual

In P&G, We reduce the Capital Appreciation Acceleration by 30%,

Less Expectation than the current Stock price Acceleration
Performance.
With additional 33usd/annualy (Capital Appraisal) less 30%
=(33*30)\(100)= 23.1usd/year
 1ST YEAR INCOME
(COMPUTATION DETAILS)

COMPANY INVESTMENT INTEREST

AMOUNT RATE/
CAPITAL DIVIDEND INCOME/
APPRECIATIO
N
NET
CAPITAL

PAFCPIC 10,000ph 22%/year 12,200

p

CWSLAI 10,000 16%/year 130,374

php/mont
h
(120,000/yea
r)

865,283.3 1,178php/ 2.44% C.A

P&G 4 share =1,046,33
php (annualy) 6.4
+
 2ND YEAR INCOME
(COMPUTATION DETAILS)

COMPANY INVESTME INVESTME INTEREST

TOTAL DIVIDEN INCOM
NT NT RATE/
INVESTMEN D
DEPOSITE
D CAPITAL
T NEEDED
CAPITAL
APPRECIAT
E/NET
(Beginnin
(For the
whole year)
ION CAPIT
g of the AL
year)

PAFCPI 10,000 12,200 22%/ye 14,884

C ar
Additional
130,374 Inv.
=Excess +
CWSLA 10,000 Remain 16%/ye
130,374 (P&G
I php/mo as Drawings) ar 269,599
Capital
nth =120,000 10,374+ .3
109626
(120,000/
=120,000
Compute
year) d as
Excess
=10,374 Additional 4%/mont
Inv. + h
Remaning
Capital
=240,00php
 3RD YEAR INCOME
(COMPUTATION DETAILS)

COMPANY INVEST INVESTME INTEREST

DIVIDEN
NT TOTAL RATE/ INCOM
MENT INVESTMEN D
DEPOSITE
D CAPITAL
T NEEDED
CAPITAL
APPRECIAT
E/NET
(Beginnin
(For the
whole year)
ION CAPIT
g of the AL
year)

PAFCPI 10,000 14,884 22%/ye 18,158.

C ar 48
Additional
Inv.
269,599.3 =Excess +
CWSLA 10,000 16%/ye
269,599. (P&G
I php/mo 3
Remain Drawings) ar 408,798
as Capital
nth =240,000 29,599.3+ .8
90,400.7
(120,000/
=120,000
Compute
year) Excess d as
=29,599.3 Additional 4%/mont
Inv. + h
Remaning
Capital
=360,00php
 4TH YEAR INCOME
(COMPUTATION DETAILS)

COMPANY INVEST INVESTME INTEREST

DIVIDEN
NT TOTAL RATE/ INCOM
MENT INVESTMEN D
(ADDITI
DEPOSITE
D CAPITAL
T NEEDED
CAPITAL
APPRECIAT
E/NET
ONAL) (Beginnin
(For the
whole year)
ION CAPIT
g of the AL
year)

PAFCPI 10,000 18,158. 22%/ye 22,153.

C 48 ar 35
Additional
408,798.8 Inv.
Remain =Excess +
as (P&G
CWSLA 10,000 Capital Drawings) 16%/ye
408,798.
I php/mo 8
=360,00 48,798.8 + ar 547,998
0 71,201.2
nth =120,000 .3
(120,000/ Excess Compute
year) =48,798.8
d as
Additional 4%/mont
Inv. + h
Remaning
 5TH YEAR INCOME
(COMPUTATION DETAILS)

COMPANY INVEST INVESTME INTEREST

DIVIDEN
NT TOTAL RATE/ INCOM
MENT INVESTMEN D
(ADDITI
DEPOSITE
D CAPITAL
T NEEDED
CAPITAL
APPRECIAT
E/NET
ONAL) (Beginnin
(For the
whole year)
ION CAPIT
g of the AL
year)

PAFCPI 10,000 22,153. 22%/ye 27,027.

C 35 ar 08
Additional
408,798.8 Inv.
=Excess +
547,998.3 (P&G
CWSLA 10,000 Remain
Drawings) 16%/ye
547,998.
I php/mo 3
as 67,998.3 + ar 687,197
Capital 71,201.2
nth =480,00 =120,000 .8
(120,000/ 0 Compute
year) d as
Excess
=67,998.3 Additional 4%/mont
Inv. + h
Remaning
 5 YEAR PROJECTION IN
(PHP)

INVESTMEN
INTERE
COMPANY T ST DIVIDEN
2ND 3RD 4TH 5TH
INCOME/NET
RATE/ D CAPITAL
AMOUN
T
CAPITAL
APPRECI
1ST YEAR YR YR YR YR
ATION

22%/y 12,20 14,88 18,158. 22,153. 27,027.

PAFCPI 10,000 48 35 08
C
ear 0 4
php

CWSL 10,00 16%/y

AI 0 ear 130,3 269,59 408,79 547,99 687,19
Php/mon 74 9.3 8.8 8.3 7.8
th

1,178p 2.44%
P&G hp/ 1,071,8 1,137,8 1,217,54 1,305,41 1,420,93
share 6.46 3.34 4
67 40
(annual