Page 8 - PowerPoint Presentation
P. 8
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
8
