Fidelis Ltd.Strategic Planning AuditFidelis Ltd. is a mid-sized, closely held Canadian corporation that designs and manufactures paper day planners. The owner, Ms. Samson, has been running this business for almost 15 years now. The company'shead office is located in a suburb of Vancouver, British Columbia. There are two plants, one located near the head office and the other outside Calgary, Alberta. Sales and distribution centres exist across the country in 15 locations in order to maximize service to customersFidelis offers a wide range of products, from a simple pocket planner to a deluxe planner. These products are sold in bookstores, department stores, and discount stores. All retailers are served by the company’s distribution network and a network of licensed distribu,tors. Fidelis has always been very profitable, but in recent years the growing popularity of electronicday planners has had a negative impact on Fidelis' sales. The company does focus on planning but somehow neglected to foresee the impact of this emerging trend and there was no feedback from the field highlighting the issue. Ms. Samson is convinced that this trend may be irreversible and isn’t sure what alternatives are available to the company or whether they should launch an advertising campaign that points out the disadvantages of electronic day planners, and to concentrate the company’s efforts on trying to build sales of the firm's high-profit deluxe day planners.As an independent Management auditor, Ms. Samson has approached you to give her a proposal that would help determine where the planning breakdown has occurred so that the next strategic planning cycle, which must occur immediately, can ensure not only commitment from all participants but can ensure that workable options are clearly identified. In order to secure the ultimate engagement you preparesome notes for a presentation next week. 5Required:Prepare the notes ensuring that the following is covered: Identifyrisks of the strategic planning function.Identify some possible causes for the breakdown in the planning process at Fidelis.Identify the processes to be reviewed that make up strategic planning.For each process provide at least two of the most crucial audit procedures to be applied during the management audit and explain its importance given Fidelis current situation.
Sharing (transfer):Contractual risk transfer to other parties, including insurance. Risk financing: Form of risk sharing, involving contingent arrangements for the provision of funds to meet or modify the financial consequences should they occurAvoid:An informed decision not to be involved in, or to withdraw from, an activity, in order not to be exposed to a particular risk. Eliminates uncertaintyAccept:An informed decision to tolerate or take on a particular risk. Take no active measures.