Risk Assessment

Likelihood of Impact to the

Risk Identified Occurence Company's FS Risk Rating

This is based on your This is based on

professional your professional
Please refer to the 11 risks judgement see tab 2.0 judgement see tab Please refer to the 3.0
listed below PROBABILITY 1,0 IMPACT Heat Map on the right

1 CYBERSECURITY 5 5 5,5

DATA
2 PROTECTION 5 5 5,5

REGULATORY
3 CHANGE 4 2 4,2

BUSINESS
CONTINUITY /
4 CRISIS RESPONSE 4 5 4,5

DATA AND NEW

5 TECHNOLOGY 5 4 5,4

6 THIRD PARTY 5 5 5,5

 TALENT
7 MANAGEMENT 2 5 2,5

BOARD
8 INFORMATION 4 5 4,5

9 DATA ETHICS 5 5 5,5

10 SUSTAINABILITY 4 4 4,4
k Assessment

Explanation

The risk is rated as high because Ayala Land Inc. (ALI) just migrated the
finance functions to SAP S/4HANA in December 2019. This change has
to be considered in the performance of the audit.

The risk is rated as high because migrating the finance functions

accelerated financial closures with 80% faster processing time using
the S/4HANA conversion without information regarding its protection
measures. This has to be considered when performing audit.

This is rated as a medium risk since Tata Consultancy Services (TCS)

apply their preconfigured industry solutions, tools and accelerators
along with contextual knowledge towards addressing the irregularities
in current systems used by Ayala Land Inc. (ALI). This may be
considered in the performance of audit.

The extremely complex and demanding transformation initiative

being implemented by Tata Consultancy Services (TCS) towards
the Ayala Land Inc. (ALI) for future transactions may provide
foreign approaches that need further understanding, considering
that prior operations fully adapted to the previous database size
and manual business processes. This is considered a high risk and
must be considered in the performance of audit.

The risk is rated as high because Ayala Land Inc. (ALI) adopted the
SAP S/4HANA which is the first implementation in the
Philippines. This may cause significant disruption especially with
the mass data collection of all diverse subsidiaries and its
acceleration of time-to-market. This change should be carefully
considered in the performance of audit.

The risk is rated as high since the cloud-led digital transformation

through Tata Consultancy Services (TCS), a third-party IT services
provides their subsidiaries onto a common platform for
integrated business operations. This change has to be evaluated
further in the performance of audit.
It is considered a medium risk since Ayala Land Inc. (ALI) relies on
the meticulous skills, experience and insights along with the
transfer of finance functions to SAP S/4HANA by Tata
Consultancy Services (TCS) in dealing with its future growth. This
may be considered in the performance of audit.

This is rated as a high risk because Ayala Land Inc. (ALI) depend
on the finance transformation for increased business agility and
its flexibility to drive new revenue and profits on the cloud-led
digital transition. This change has to be considering during the
performance of audit.

This is considered as a high risk because of the transition from

manual business processes to a complex finance transformation,
the first of such implementation in the Philippines, catering into
a larger user base compared to prior operations. This should be
carefully considered when performing audit.

This is a high risk considering that the comprehensive portfolio of

end-to-end services ensuring that all aspects maximize business
value from their technology investments in drawing up their
future architecture and strategy may have a significant influence
towards the approach of sustainability in real estate by Ayala
Land Inc. (ALI). This change has to be considered for the
performance of audit.