Governance, Business Ethics, Risk Management and Internal Control

GOVBUS – BSA 2 – Summer 2021

4 Output Requirement : Written Work
th

Name: John Paul L. Castroverde Course/Year/Section: BSA – 2A Date : August 28, 2021

Instructions: Identify the potential risks (at least 2) associated with these following companies.
Do the assessment method of risks as discussed in the previous meeting on “Risk Management:
Insights in reducing and managing business risks.” Fill out the table given below, and submit
requirement on or before August 25, 2021 in Google classroom.

Company Associated Risks Classifica Risk Strategic ways Monitoring of

Name tion of Likelihood, for Risk Risk Reduction
Risks Severity Reduction Measures
and
Consequenc
es
Jollibee Financial Risks – High Risk Probable To manage The company
The company these interest will monitor its
does not engage Risk index = rate risk, the
risk reduction
in any long-term 12 (Medium company will
measures
debt and any –Acceptable) use a derivative
regularly and
foreign currency- instrument to watch for the
Severity
denominated fix the interest
score = 3 environment for
transactions. It rate over the
(Medium changes that
may cause the term of long-
company impact on term debts. The affect or impact
exposure to Performance company will the risks.
interest rate risk , Schedule, also monitor its
and foreign and Cost) cash flows
currency risk. closely.

Managing these Monitoring the

Commodity Occasional commodity effectivity of
Price Risk – The Moderate price risks will
Risk index = involve the this strategy
company has Risk
observed that the 10 (Medium company to will take time as
commodity prices –Acceptable) proactively look there is a need
are increasing as and manage of observation
Severity about how the
inflation is their pricing
score = 3 revenues would
picking up. policy. The
(Medium present in data.
company might
impact on significantly The
Performance increase their management
, Schedule, product price should also
and Cost) since there is an manage the risk
increase in as they
inventory price
implement their
to offset
strategy.
earnings.
BDO Foreign High Risk Frequent The company’s The company
Currency Risk – way of reducing will frequently
Risk index =
The company is this risk is by monitor their
15 (Medium
exposed in this minimizing risk reduction
–Acceptable)
kind of risk since exposure to measures in
exchange rates Severity financial succeeding
are arising from score = 4 markets. The months or years
the company’s (High impact company will to ensure their
premium on not engage in risk
collection, Performance the trading of management
denominated by , Schedule, financial assets. implementation
US dollars. and Cost) are still in
placements.

The company
High Risk Probable The company
Liquidity Risk – adopts a
monitors their
This pertains to prudent
Risk index = liquidity risk strategy
the company’s
13 (Medium management honoring all
ability to finance
its operations and –Acceptable) where it cash
requirements on
to meet Severity maintains
an ongoing
obligations as score = 4 sufficient cash
basis to avoid
these become due (High impact and cash raising funds
is crucial to its on equivalents and
above market
viability as a Performance other short-term rates.
business entity. , Schedule, placements to
and Cost) meet other
short-terms
payable as they
fall due.
Google The Google Low Risk Remote Technologies Even though the
Company is the might be able to probability of
Risk index =
most well-known block the this risk is low,
7 (Low –
company in our progress of the company
Acceptable)
world right now Google, but like might still want
and we might Severity everything else, to monitor their
think that the score = 2 Google is also strategy
business is perfect (Low impact improving and regularly as it is
and not face any on also anticipating probable and
challenges along Performance every kind of not impossible
the way. Even , Schedule, change along to occur. It
Google, like other and Cost) the way. would adversely
company are Mitigating this affect their
experiencing risk is kind of operating
risks, one of this simple to the results for sure.
is the risk of the company since
rise of other new they are
technologies. improving their
performance
year by year.
 Operational Moderate Probable The company’s The company
Risks – Google Risk way to mitigate will continue to
Risk index =
company might this risk is to preview and
12 (Medium
be experiencing create a history monitor their
–Acceptable)
internal control log with all the activities
errors as well as Severity failures or regarding this
technological score = 3 errors it strategy to
failures since (Medium experiences ensure that the
their main impact on during goals of risk
operations are Performance operations and management
mostly on the , Schedule, recognize programs are
website of the and Cost) possible achieved.
company. connections
between them.
Ayala Environmental Moderate Occasional The company To monitor this
Land Risk – risks such Risk had an idea strategy, the
Risk index =
as typhoons and about green company
7 (Low –
floods are one of financing for developed a risk
Acceptable)
the things that are business units facility to
caused by climate Severity involved in aggregate risks
change which score = 2 renewable and also assess
could interrupt (Low impact energy which the benchmarks
business on can be an of the
operations. Performance additional company’s risk
, Schedule, source of funds management
and Cost) when calamity practice with
comes. global standards
every three
years.

Competitors Moderate Regular

Risk Frequent The company is
Risk – Actions of monitoring on
conduction
new competitors Risk index = market annual risk
arising in the 14 (Medium indicators to be assessment
market may affect –Acceptable) used as basis for process where
the company’s sound decisions
Severity risk owners
competitive in regards to the
score = 3 perform their
advantage and risk and
(Medium self-assessment.
will have some discover
difficulties in impact on possible
achieving the Performance opportunities.
business’ goals. , Schedule,
and Cost)

PLDT Product or High Risk Frequent The company Regular

Service Quality might conduct monitoring of
Risk index =
Risk – The customer vendor
18 (High –
company’s satisfactory performance to
Unacceptabl
inability to meet surveys to ensure quality
e)
or exceed observe what performance
customer part of their and to observe
expectations Severity services are the changes of
about the score = 4 ineffective and brought of the
relevance and (High impact needed change. strategy.
quality of service on Regular
they are Performance meetings are
providing. , Schedule, also been done
and Cost) to ensure that
issues are
addressed and
resolved within
target timelines.

The company The company

Cybersecurity High Risk Probable will have will continue to
cascade IT-
Risk – The Risk index = regular conduct
related policies
company also has 13 (Medium of vulnerability
in the
a threat of cyber –Acceptable) penetration
system testing organization
attacks on their
Severity and will put and monitor
critical systems
score = 3 system security regularly the
which also
(Medium protocols in mitigation
contains the
impact on place. measures they
consumer’s
Performance have
confidential
, Schedule, implemented.
information.
and Cost)