PART I
Review each job description for the executive staff at CCH. Your first task is to adapt the job description by detailing the essential job duties with respect to risk management. Use the provided job descriptions as a starting point for your work. Then add specific risk responsibilities for each person using the COSO framework as a guide.
Current Job Descriptions:
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer
PART II
This is the first step in developing a risk assessment and management policy. In developing your policy, consideration of risk appetite is critical. Identify the areas of financial and operational risk at CCH. Prepare a policy on how each area of risk should be handled (i.e assume the risk, mitigate the risk, or transfer the risk).
Prepare a table with the risks that you have identified, level of risk, strategy, and justification for choosing the strategy. You are encouraged to use the balance sheet and income statement as a starting point, but keep in mind there are items not listed on the financials that can also be at risk. For example, the reputation of the company, HIPAA, or key employees. Below is a suggested format but feel free to add additional columns as needed.
|
Risk Area
|
Level of Risk
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Strategy (Assume, Mitigate, Transfer)
|
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Cash
|
Low
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Assume cash consists of bank deposits federally insured
|
|
Vehicles
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Medium
|
Assume physical damage, transfer liability risk
|
Strategy (Assume, Mitigate, Transfer)
Cash
Low
Assume cash consists of bank deposits federally insured
Vehicles
Medium
Assume physical damage, transfer liability risk
PART III
This week you will identify the systems that you will need to implement to monitor and report the risks within the new Risk Management System. This includes any internal and/or external resources that will be necessary. You will also need to identify methods to measure the risk. It may be necessary to revise (somewhat) your areas of financial and operational risk developed in Module 03.
For each risk that you discovered in Module 03 and/or this week, decide how you will measure, monitor, and report on the risk to the board of directors. Also, decide how you will report the risk to the shareholders in the financial statements and notes. You may add columns for this information to your table developed in Module 03. Be sure to use footnotes if more information is needed than you feel is possible to include in the table.
PART IV
You will construct the PowerPoint presentation that you intend to present to the Board of Directors. The presentation should detail the new risk policy for CCH, outline the risks identified along with solutions to deal with the risks. Be sure to include extensive slide notes as well. Outline your plan to adequately measure, record and report identified risk areas.
Attachment:- risk management project.rar