Name: Michael Angelo Z.

Gloria
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 idea of risk appetite is used in the risk management process to describe how much risk a company is ready to
accept in order to achieve goals that it believes are worthwhile. An organization's risk capacity, or the maximum
amount of residual risk it will accept after controls and other protective measures have been implemented, can also
be thought of as its risk appetite. Risk appetite is the amount of risk that a company is ready to take on in order to
achieve its goals before deciding what steps to take to lower the risk.

No, all businesses do not have the same level of risk appetite because a risk can be assessed using the impact and
likelihood figures in the risk appetite table. Connect the risk appetite to the business's strategic goals. A strategic
choice based on long-term goals is risk appetite. A company's management can make risk-informed decisions with
the aid of risk appetite. This is crucial because it allows senior management to be involved in advancing a risk-
informed agenda and evaluate the effects of management decisions.

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. Customer Satisfaction with Products and service
 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
 Lack of incentives or rewards to employees

 Inappropriate hiring of employee

 A lack of ability to communicate to the customers

3. Getting electricity, reducing green house gas  Fire from faulty electrical equipment for installations.
emissions, reducing demand for energy imports, and
lowering our costs on a household and economy-wide  Electric shock and burns from contract with live parts
level.  Injury from exposure to arcing.

4. Dealing with construction permits measure the  The most significant problem of not acquiring the permit is
 simplicity, efficiency and accessibility of the regulatory a city inspector
environment.
 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.

5. Utilization leftover manufacturing materials  May raise the expenses of the company

 Chemical or toxic exposures to employees

 Error in managing leftover materials