AJ McDonalds & Co Pty Ltd is an Accounting company recently established with its office located at 44 George
Street, Sydney, 2000. Its board is composed of 7 directors responsible for overall supervision and management of the company.
Products & Services
The Company is planning to offer following services to its clients which would include corporate clients, trusts, partnerships and individuals:
· Financial & investment Planning
· Audit & assurance
· Internal audit outsourcing
· Tax Planning
· Seeking Private Rulings on specific tax issues
· Tax returns
Vision Statement of AJ McDonalds & Co Pty Ltd
"To be one of the best professional accounting and management consultancy company in Pacific region"
Mission Statement of AJ McDonalds & Co Pty Ltd
"Our mission is to provide a largest range of accounting, taxation, risk management and management consultancy to SME and large businesses and financial institutions in Pacific region, to also contribute towards increase in their shareholders' value.
You have been appointed as Risk Management Officer of the company. The CEO has tasked you to develop a risk management strategy for the company and its implementation plan.
Meeting with CEO
You held a meeting with the CEO on the Risk Management strategy. You explained that it was not possible to have a totally risk-free environment. Many decisions involve managing risks according to the Company's assessment of what constitutes an acceptable level of risk and its judgments about the costs and benefits of particular courses of action. CEO advised to prepare a risk matrix to assess the level of acceptable risk.
You also explained following objectives of Risk Management function in the company and sought his support to ensure that the objectives are achieved through a series of actions including strategy and implementation:
· ensure that the major risks faced by the Company are identified, understood and appropriately managed
· ensure that the Company's planning and operational processes focus on areas where risk management is needed; and
· create an environment where Company staff take responsibility for identifying and managing risk.
You also explained that as a part of the strategy, Risk management phases like Risk avoidance, Risk transfer, Risk retention and Risk control will be effectively implemented.
Requirements of this Assessment:
You are required to prepare and submit following for this Assessment:
1. Minutes of the meeting with the CEO. Use attached template for the minutes.
2. Risk Management Strategy which should include following contents:
i. Write describe key Objectives of Risk management and features of organisational policy, procedures, guidelines and authorities related to risk management
ii. Outline the key organisational products and services, and associated risks and liability loss exposures
iii. Identify Risk Management process including identification, Assessment & evaluation, control and monitoring.
iv. Create Risk management matrix assuming at least three examples of risk and using following template:
v. Outline the key features of actuarial and financial principles and processes related to risk exposure strategies
vi. Discuss risk management phases i.e. Risk avoidance, Risk transfer, Risk retention and Risk control
vii. List at least one example of risk for financial industry like Political, Economy, social, technology, legal and environment (PESTLE)
viii. Develop risk acceptance criteria, identify high and low hazard financial and legislative risk areas, and develop appropriate risk mitigation strategies
ix. Identify and evaluate appropriate criteria for acceptance or rejection of risks using Australian risk management standards
x. Compare and contrast risk assessment and prevention methods, and application
xi. List Internal and external stake holders and communications methods
xii. Risk Management Committee
xiii. Principles of Risk Management listed in Australia New Zealand Standards AS/NZS/ISO31000:2009.
xiv. Legislation affecting business and related risks. Consider legislation like Corporations Act 2001, WHS Act, Credit Act 1985 (Cwlth) and Consumer Credit (Victoria) Act 1995, Financial Management and Accountability Act 1997 and Australian Taxation Act etc
xv. Describe the key features of industry sector compliance requirements
3. Provide an Implementation Plan for the Risk Management Strategy prepared in item 2 above. This may include following:
i) Risk register for the risks identified
ii) Responsible officials to manage identified risks
iii) Actions to manage risks
iv) Time frame to manage risks, if applicable
v) Review date
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