A3_team#8_5CM4

ENGLISH SUBJECT COMPLEMENT

Assignment 3: What is Risk Management and Why is it important?►Teacher`s name for English complement: María Belén Vázquez ► GROUP: 5CM4 ►Major: Accounting►TEAM 8: % Castellanos Hernández Yanya Yamile 100 Caviedes Saldivar Miguel 100 Gonzalez Montejo Adrian 100 Ortega Caloca Fernanda 100 ►Date: September 08th, 2024

INSTITUTO POLITÉCNICO NACIONAL ESCUELA SUPERIOR DE COMERCIO Y ADMINISTRACIÓN

►Situation that can occur and cause an impact on the project. ►Manageable. ►It can and should be previously identifiable. ►It can become a problem.

Risk

Problem or Risk?

Problem

►Situation that occurs and impacts the project►Requestable, requires immediate action. ►Discovered (usually reactively) during project development

whats is risk management?

Risk management is the process of identifying, assessing, and controlling threats to an organization's operations, earnings, and capital

Risk management objectives is Identifying and tracking risks, Reducing risk, Creating a plan, Building understanding, Saving costs.

Legal liabilities.

Voluntary.

• Negligence.
• Recklessness .
• Lack of knowledge (training) on the part of the worker.

Involuntary.

• Carelessness.
• Forgetfulness

• Lack of concentration.

Can be causen by Breach of:

• Laws.
• Regulations.
• Contracts.
• Agreements.

Human error.

RISKS

Natural desasters.

Closure of the Chapultepec fair

Hurricane Otis

Example of risk

We don´t have control over them, they affect the company's environment and could result in human losses, infrastructure and productive activities, as floods or quake, etc.

Natural desasters.

7 steps to manage risk

While your organization can’t entirely avoid risk, you can anticipate and mitigate risks through an established risk management procedure.

3. Quantify each exposure.

2. Identify potential exposures.

1. Determine the organization’s risk tolerance/appetite.

7. Review and modify the strategy as needed.

6. Monitor the exposures and evaluate the effectiveness of the strategy.

5. Develop and implement an appropriate risk management strategy to manage the differences between the two.

4. Compare current levels of risk to the target level of risk.

Refers to the entity's ability to meet its obligations..

Related to the management of the entity’s resources.

possible situations of changes in price, transportation or taxes.

4. Compliance Risk:

2. Market risk.

3. Financial Risk

1. Strategic Risk

Types of Risk

Associated with the way the entity is managed.

Derived from actions, omissions or improper use of power to obtain a particular benefit.

7. Risk of Corruption

External auditors may make errors in analyzing and reporting on the Company's financial statements.

6. Audit risks.

Based on the technological capacity of the entity

5. Technology Risk

Types of Risk

Thank you for your time!