Page 29 - 5.2 i. Manac Finance ITC Summarised Notes

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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