SEKOLAH TINGGI AKUNTANSI NEGARA

PROGRAM DIPLOMA IV AKUNTANSI

MOHAMAD HASSAN, AK., MAFIS, QIA, CRMP, CRMA

RISK DEFINITION

…..something…….

……impact………….

…..objectives………

ENTERPRISE

RISK MANAGEMENT

A process, effected by an entity’s

board of directors, management

and other personnel, applied in

strategy setting and across the

enterprise, designed to identify

potential events that may affect

the entity, and manage risk to be

within its risk appetite, to provide

reasonable assurance regarding the

achievement of entity objectives.

Risk

Management.

I wonder

what that

is!

ERM CONCEPT

On going process

Affected by people

Should be applied in setting organization strategy

Must be applied across the organization

Risk appetite should be considered

Will only provide “reasonable assurance”

Must focus on the achievement of objectives

WHY RISK MANAGEMENT?

• Loss

• Environment

• Corporate Governance

• Strategic Management

• KPI

• Managing Intangibles

• Capital Budgeting Decisions

• Growth Strategy

• Reactive Decision Making

INTERNAL CONTROL

COSO - Framework

PP 60 / 2008 - SPIP COSO

ICF

The mission of risk management implies :

1. to define the threats (and opportunities) that can prevent the company from

realising (or improve) its planned objectives and strategies;

2. to determine and follow actions with operational managers to reduce these

threats down to an acceptable risk level (or realise the opportunities);

3. to control the progress of accepted actions.