Page 10 - PowerPoint Presentation
P. 10
RISK MANAGEMENT
Risk management strategy
• The Official Learning System of the Chartered
Institute of Management Accountants (CIMA),
indicates that an entity's risk management strategy
should include:
• the risk profile/risk appetite of the entity – that is,
stating the level of risk it finds acceptable
• the risk management (risk identification and
assessment) processes of the entity
• the entity's preferred option for risk treatment (that is
retention, avoidance, reduction, or transfer)
• the person who is directly responsible for the entity's
risk management
• how the reporting and monitoring processes take place
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