Name: Mary Claire Y.

Miser
Section & Subject: BUS3 Governance, Business Ethics, Risk Management, Internal Control
Class Schedule: M/W/F 8am-9am
Teacher: Ruth Munieza

1. How is the concept of risk appetite applied in the risk management process? Do all companies have the same level of risk
appetite? Why or why not?

The concept of risk appetite applied in the risk management process is that, the amount of risk an organization is
willing to take in pursuit of objectives it deems have value. Risk appetite can also be described as an organization's
risk capacity, or the maximum amount of residual risk it will accept after controls and other measures have been put
in place. Risk appetite is the level of risk that an organization is willing to accept while pursuing its objectives, and
before any action is determined to be necessary in order to reduce the risk.

No, all companies have not the same level of risk appetite because a risk can be evaluated in the risk appetite table
based on the impact and likelihood numbers. Associate the risk appetite to the company's strategic objectives. Risk
appetite is a strategic determination based on long-term objectives. Risk appetite helps the management of a
company to make risk-informed decisions. This is important because it is a way to assess the impact of management
decisions and to ensure senior management is engaged in driving a risk-informed agenda.

Select a business in your locality. Think of the top five business objectives of your selected business. For every identified business
objective, identify at least three risks. Use the following template:

Business Objective Risks

Example:
1. Compute, file and pay taxes based on the requirement
of tax laws and BIR Regulations
2. Registering Property in ROD (Registry of Deeds), title
registration are to protect property rights, facilitate land
transactions, and allow land to be used as collateral for
a loan.
 Error in computing taxable income and the tax due
 Intentional understatement of taxable income to reduce
the tax due.
 Intentional failure to file or pay any internal revenue tax
on time
 Information being stolen. Without proper mitigation, your
business could become vulnerable to private information
being stolen.Inappropriate hiring of employee
 Without registration, a buyer has no legal right over the
property so, one cannot sell it to anyone under the Transfer
of Property Rights Act. It mandates that documents of
immovable property need to be compulsorily registered.

 The paper looks at a variety of technical issues,

challenges, and problems that arise during systematic first
registration programs, their causes and what can be done

3. Getting electricity, reducing green house gas
emissions, reducing demand for energy imports, and
lowering our costs on a household and economy-wide
level.
4. Dealing with construction permits measure the
simplicity, efficiency and accessibility of the regulatory
environment.
5. Grow or increase company market size to attract
potential investors
to deal with them.
 Fire from faulty electrical equipment for installations.
 Electric shock and burns from contract with live parts
 Injury from exposure to arcing.
 The most significant problem of not acquiring the permit is
a city inspector
 This could lead to extensive fines incurred by construction,
building or renovations without the proper permit.
 No matter who contracts him or her, the inspector may shut
down the entire operation.
 Similar businesses compete with one another, which might
limit your company's expansion
 A necessity for more capital
 Ineffective management to new employees