ACCY304-8-Risk0 - BusinessRisk Session8 February16,2011...

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Business Risk Session 8 February 16, 2011 1 Department of Accountancy University of Illinois at Urbana-Champaign
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2 Remember COSO Organization’s       Control             Risk          Control overall strategy     objective Department of Accountancy University of Illinois at Urbana-Champaign
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3 Groundwork for Control Organization’s       Control            Risk          Control overall strategy     objective A movie theater’s ticket sales system Making      Collect cash         Careless         Incentives profit selling    accurately        employees movie tickets         by providing  Serve customers     Sudden   good service      quickly         customer        cashiers          increase      Department of Accountancy University of Illinois at Urbana-Champaign
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4 Risk Risk Elements: 1. Loss 1. Magnitude: size or significance 1. Frequency: likelihood or uncertainty Department of Accountancy University of Illinois at Urbana-Champaign
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5 Risk: Loss Risk Elements: 1. Loss Financial loss Performance loss Physical loss Social loss Time loss Department of Accountancy University of Illinois at Urbana-Champaign
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6 Risk: Magnitude Risk Elements: 1. Magnitude: size or significance The greater the magnitude of the potential loss, the  riskier the prospect is Risk-seeking behavior Risk-aversive behavior Risk-neutral behavior Department of Accountancy University of Illinois at Urbana-Champaign
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This note was uploaded on 08/18/2011 for the course ACCY 304 taught by Professor Bol during the Spring '11 term at University of Illinois at Urbana–Champaign.

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ACCY304-8-Risk0 - BusinessRisk Session8 February16,2011...

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