...Enterprise Risk Management (ERM) provides a framework of planning, organizing and controlling activities that made by organizations in order to manage and minimize the effects or risk on the organization’s capital and earnings. ERM is also associated with accidental losses, which include financial, strategic, operational, and other risks. Every organization must follow all the local, state, and federal laws they must also comply with Environmental Procreation Agency (EPA). Alumina Incorporation is an international organization that operates in more than eight countries, which operates out of the United States. In the years Alumina Inc. has maintained a good environmental regulation with only one violation in recorded five years ago. A lawsuit involving Alumina Inc. which claims that the EPA violation from years ago was the cause of a 10-year-old girl’s diagnosis with leukemia. This paper will discuss the potential tort cases that could transpire from the Alumina Business Regulation simulation and the seven-step process of Enterprise Risk Management (ERM) dealing with the potential negligence case against Alumina Inc. The tort case involving negligence by Alumina Inc. would be the most obvious tort because of the claim made by the mother of the 10-year-old with leukemia. This would be a negligence case involving a violation of a statute making this a case of negligence. Policies and Procedures Policies and procedures are the guidelines and rules that are adopted by a company;...
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...| Deakin UniversityAssignment Attachment SheetFaculty of Business and Law | Date received | This form must be completed, signed and attached to each assignment you submit within the Faculty of Business and Law. If submitting online, this form must be completed and submitted with your assignment. Last NamePlease use block letters, and enter your name as it appears on your Deakin student card | First Name | Student ID | Li | Ke | 900335188 | Unit code | Unit name | Campus | Lecturer/Tutor/Unit Coordinator | MAF754 | Enterprise Risk Management | | Lecturer: David SewellPeter | | | | Tutor: | Assignment number / title | Due date | Assignment 2: A research paper of enterprise risk management for Sinomaster(SMT) group | 25 May 2012 | If this assignment has been completed by a group or team:1. Each student in the group must complete and sign a separate form;2. The assignment will be returned to the student in the group nominated below.*This assignment was completed in a group or team: No (circle or delete as necessary)The assignment should be returned to the student named on this form: No (circle or delete as necessary) | Plagiarism and Collusion Plagiarism occurs when a student passes off as the student’s own work, or copies without acknowledgement as to its authorship, the work of another person. Collusion occurs when a student obtains the agreement of another person for a fraudulent purpose with...
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...The Importance of Enterprise Risk Management Introduction Enterprise risk management “calls for corporations to identify all the risks they face, to decide which risks [need] managing actively, and then to make that plan of action available to all stakeholders (not simply shareholders) as part of their annual report (Quinn, 2008). According to Quinn (2008), “What you don’t know about corporate enterprise risk management (ERM) may hurt you—and probably already is. Think of the number of post-Enron cases that have resulted in retirement benefits and stock value being wiped out overnight and weaknesses in corporate information technology systems that have allowed hackers to steal your identity (if not your wealth). All of these and a growing number of events are debacles you might have avoided had companies had an effective ERM program in place.” So what does ERM mean to management when it comes to improving the planning, performance, and effectiveness of business operations through better decision making; and, how do employees, customers and investors benefit from having a strong ERM process? We live in a world where technology dominates everything. Businesses cannot efficiently or effectively operate if they are not technologically equipped. For every workstation there is almost always a computer. For every computer there is almost always an internet connection. That Internet connection connects to the entire world. By being connected to the entire world, there...
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...stakeholders including customers, owners, employees, regulators, suppliers and society. Each stakeholder seeks a separate form of value from an organization therefore ERM will effect each group somewhat differently. “Under the theory that a company is set up in order to create maximum value for all stakeholders, all activities related to operations are as of necessity exposed to risk. The Enterprise Risk Management (ERM) is a tool managers can utilize to respond to impending risks, uncertainties and opportunities. It efficiently and effectively increases the value of a firm” (Laisasikorn, Rompho) Performance Measures Owners/Management “The greatest overall value from ERM and related reporting is the timeliness, conciseness, and flexibility, which facilitate improved decision making capabilities within the executive and director levels, and in other layers of management”. (Ulrey,Sue) Owners are primarily concerned with the financial well-being of the company. They strive to ensure that funds are best utilized to attain the organizational objectives and maximum the rate of return achieved with minimal risk. This is accomplished only through effective and efficient operation of the company provided with a well operating ERM. Customers Customers must get quality products at reasonable prices. The consumer dollar is the purpose of any organization at its root. Should clients be unsatisfied with the company or product they will spend their dollar with a competing company. Employees ...
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...Risk-Based IT Audit Risk-Based Audit Methodology Apply to Organization’s IT Risk Management Kun Tao (Quincy) Cal Poly Pomona Author Note This paper was prepared for GBA 577 Advanced IS Auditing, taught by Professor Manson. March 2014 Page 1 of 26 Risk-Based IT Audit Table of Contents Abstract .......................................................................................................................................... 3 Introduction .................................................................................................................................... 4 Methodology................................................................................................................................... 6 Risk-based auditing methodology: Risk assessment...................................................................... 6 IT Risk Management................................................................................................................... 7 IT Risk Control Framework........................................................................................................ 8 Identifying assets...................................................................................................................... 13 Determining criticality and confidentiality levels......................................................................14 Threat and vulnerability identification................................................................
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...Feedback: What you chose is correct. Part 2 of 5 - 20.0/ 30.0 Points Question 7 of 30 5.0/ 5.0 Points Communicating information to external decision makers is accomplished through ___ as part of the process of ___. A. Financial statements, bookkeeping  B. Financial statements, accounting C. Journal entries, bookkeeping D. Journal entries, accounting Answer Key: B Feedback: What you chose is correct. Question 8 of 30 5.0/ 5.0 Points Human judgment is important in which of the following AIS tasks: (i) designing source documents, (ii) recognizing recordable transactions. A. I only B. II only  C. Both I and II D. Neither I nor II Answer Key: C Feedback: What you chose is correct. Question 9 of 30 0.0/ 5.0 Points Courses intended for freshmen at a local university are numbered from 100 to 199, while courses intended for seniors at the same university are numbered from 400 to 499. Which coding system is the university using? A. Sequential B. Block  C. Hierarchical D. Mnemonic Answer Key: B Feedback: What you chose was incorrect. Question 10 of 30 5.0/ 5.0 Points As an internal control measure in the accounting cycle, physical security most clearly applies to:  A. Source documents B. The balance sheet C. The income statement D. The statement of cash flows Answer Key: A Feedback: What you chose is correct. Question 11 of 30 5.0/ 5.0 Points ...
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...The title of this study is “Success Factors for Implementing Enterprise Risk Management” by David Bowling and Lawrence Rieger. Enterprise risk management (ERM) has become a topic of increasing interest over the years. Continuing regulatory scrutiny and COSO releasing a new framework is driving this discussion. The general area of study for this research is ERM implementation, more specifically, implementing COSO’s framework. Companies are starting to realize the benefits of having a framework in place and the value it brings to their organization. The specific purpose of this article is to dissect the components of COSO’s ERM Framework. The author’s then describe how to take that framework and implement it into business practice, while discussing some of the challenges that may be encountered. The author’s take a minute to quickly review the COSO Framework and explain the importance of corporate governance. Companies must establish their risk appetite before implementation. Implementation takes time but is a key component of the corporate governance framework. Corporate governance addresses the needs of all stakeholders which ensures the sustainability of the company in the long term. A qualitative method was used in this study. Three of the challenges encountered during implementation were lack of support from upper management, insufficient resources and the stamina/focus to last throughout the process. Some of the success factors are a focus on strategy and business...
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...Risk is a commonly used term and its usually liked with bad impacts on our objectives. The Oxford English Dictionary define risk as “ a chance or possibility of danger, loss, injury or other adverse consequences”. There is no agreeable technical definition of risk as it went through many developments. The first stage was the management of threats only then the term is extended to cover the threats and the opportunities which face the organisations. The latest stage which is the management of the threats, opportunities, uncertainties and its sources. Of uncertainty (Ward and Chapmen, 2003). Therefore, Dowie argues to banned use the term “risk” in the risk management because of its misleading. The definition will be used in this paper is the Australia/New Zealand standard definition which is "The chance of something happening that will have an impact on objectives" (Australia/New Zealand Standard, 1999). The reasons of using this definition are the simplicities and the coverage of the negative and positive effects on objectives. Risk management has been done for thousands of years (Bernstein, 1996). The Risk management term was first introduced in the 1950s by the insurance industry. The first text book published about risk management in 1963 titled Risk management and the Business Enterprise by Robert I. Mehr and Bob Hedges (D’Arcy and Brogan, 2001). Risk management is a integrated process and risk manger need to assist the company’s business process are constant with its...
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...* Difficult situation and how you handled it * Team work results and complications * Didn’t agree with a superior * Turned a weakness into something positive * Greatest weakness and strengths * Excel projects * Analytical thinking aside from work and school * How you dealt with a difficult co-worker and how you handled it * Describe enterprise risk management * Why did you choose the university that you go to and what process did you go through to make that decision? * Give me an example of a team project in which you encountered conflict, and how you overcame it. * Tell me about a time when you prevented a mistake from happening. * Tell me about a time when you accomplished something against the odds. * A time you took a risk * Why crowe and not the big four? Ample of opportunity to work in niche industries. * Tell me about a time where you had to be the bearer of bad news. * How do you handle a bad situation? * What are you afraid of? * Tell me about a time people were relying on you and things did not go as planned. What happened and how did you handle it? * Tell me of a time when you disagreed with team member and how you handled it. * Why do you want to do accounting? * Give me an example where you had to make a difficult decision which positively affected an outcome either in school or the workplace? * Tell me about yourself. Not school, not background, but you. What makes...
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...Commission (COSO) Enterprise Risk Management (ERM) – Integrated Framework (2004) is a guideline for managing risk and understanding internal controls. The eight components of the COSO ERM Framework are as followed: internal environment, objective setting, event identification, risk assessment, control activities, information and communication, and lastly, monitoring. Here we define/describe these eight components: a. The Internal Environment captures the tone of the organization and the sets the standard on how risk is viewed and addressed by the entity’s members. The entity will define such things as: risk management philosophy and risk appetite, integrity and ethical values, and the environment in which they operate. b. The Objective Setting is the objectives that exist before management identifies potential events that will affect their achievement. c. Event Identification are internal and external events affecting achievement of an entity’s objectives that are indentified, then distinguished between risks and opportunities. d. Risk Assessment is simply risks that are analyzed as a basis for determining how they should be managed. Risks are assessed on an inherent and a residual basis. e. Risk Response is avoiding, accepting, reducing, or sharing risk. Management develops a set of actions to align risks with the entity’s risk tolerances and risk appetite. f. Control Activities are policies and procedures that are established and implemented to help ensure the risk responses...
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...Enterprise Risk Management William Briggs, D. Scott Forman, Benecia Richardson LAW/531 July 16, 2012 Sonja Dickens, Esquire Enterprise Risk Management Enterprise risk management may be defined as “people, systems, and processes working together across the organisation to systematically think about managing a wide range of risks that could impede achieving organisational objectives/opportunity” (Harb. 2008, slide 4). The student writers were asked to watch a video in which product liability was an issue. In the video, Non-Linear Pro sold an underperforming editing system to Quick Takes Video. The students were asked to identify potential tort risks in the video, to use the seven key elements of successful enterprise risk management to help mitigate associated risks, and to determine the criteria of involving legal counsel in product liability disputes. Potential Tort Risks Business-to-business sales are an important aspect of a supply and demand economy. In the video case study Product Liability the transaction demonstrated highlights some of the tort scenarios a business manager may encounter during the course of business. The torts risks in the video are classified in three categories. Although not all the tort risks are appropriate for follow up action, one tort risk is a clear violation. Through a process of analysis, the determination of the business manager may be to involve legal counsel to recover damages for the tort...
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...business to include discrimination and illegal doings. Functions and Responsibilities Company Standards or Code of Ethics: Riordan Manufacturing is dedicated to producing and providing the highest quality products, to be competitively priced, for the achievement of a safe and productive environment. Riordan Manufacturing Board of Directors has the responsibility of oversight of the bylaws and procedures developed by the organization. The strategic, operational, reporting, and compliance objectives of the company will come from administration and administration will oversee the implementation of the objectives throughout the company through the employees. Committee of Sponsoring Organizations (COSO) has developed a Risk-Management Guide to help companies incorporate a risk-management plan into their standard means of operation. The...
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...AC503 Annotated Bibliography Austin, Stephen G. (July 2012 ). Updated COSO framework will help audit committees comply with SOX . In Journal of Accountancy. Retrieved November 5, 2012, from http://www.journalofaccountancy.com/Issues/2012/Jul/Audit-committees.htm. This reference will be used for the expectations for the future part of my research for SOX. It is current in the feelings of Sox this year. It also gives some insight on what will be changes for the future in regards to the upgrade to the model of “providing new guidance regarding monitoring, enterprise risk management (ERM), enhanced board oversight, and quantifying risk appetites for corporate America.” Lowengrub, Paul. (December 6, 2005). The Impact Of Sarbanes Oxley On Companies, Investors, & Financial Markets. In Sarbanes-Oxley Compliance Journal. Retrieved November 5, 2012, from http://www.s-ox.com/dsp_getFeaturesDetails.cfm?CID=1141. This source provides a snap shot of impact on companies from SOX . I wanted to use this for provided glimpse of what accounts were expecting 5 years later. It’s sort of a progression at intervals. McConnell, Donald K. Jr. and George Y. Banks . (September 2003 ). CPAs will have to develop new procedures and scrap some old ones. In How Sarbanes-Oxley Will Change the Audit Process. Retrieved November 5, 2012, from http://www.journalofaccountancy.com/issues/2003/sep/howsarbanesoxleywillchangetheauditprocess.htm. This source was opinioned at the time of when changes were...
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...Risk Management Risk is a commonly used term and its usually linked with bad impacts on our objectives. The Oxford English Dictionary defines risk as “a chance or possibility of danger, loss, injury or other adverse consequences”. There is no agreeable technical definition of risk, as it went through many developments. The first stage was the management of threats, only then the term is extended to cover the threats and the opportunities which face the organizations. The latest stage is the management of the threats, opportunities, uncertainties and its sources. Therefore, Dowie argues to ban the use of the term “risk” in risk management because it is too misleading. The definition will be used in this paper is the Australia/New Zealand standard definition which is "The chance of something happening that will have an impact on objectives". The reasons of using this definition are the simplicities and the coverage of the negative and positive effects on objectives. Risk management has been around for thousands of years (Bernstein, 1996). The Risk management term was first introduced in the 1950s by the insurance industry. The first textbook published about risk management was in 1963, titled “Risk management and the Business Enterprise” by Robert I. Mehr and Bob Hedges (D’Arcy and Brogan, 2001). Risk management is an integrated process and risk mangers need to assist the company’s business process are constant with its strategies, and the what is the relation between risk...
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...Throughout the “Product Liability” video about the Non-Linear Pro video editing system, the manufacturer failed to engage Enterprise Risk Management (ERM) and thereby opened itself to liability through defect in manufacture. After all, the product did not function in accordance with its specifications and the sharp piece of metal exposed when users insert the disk drive heightened the chances of injury. Because of this, defect in manufacture tort liability is applicable. After all, defect in manufacture (Cheeseman, 2010) “[…] occurs when the manufacturer fails to (1) properly assemble a product, (2) properly test a product, or (3) adequately check the quality of a product. As demonstrated, the exposed metal and failure to perform for more than five minutes due to insufficient memory, the Non-Linear Pro video editing system proves defect in manufacture. So do the number of software bugs. However, the manufacturer’s claim additionally substantiated by the Non-Linear Pro trainer contending that Quick Takes Video would from Non-Linear Pro be up and running in a day and a half, and would be twice as fast with the Non-Linear Pro video system was negated by experience. After all, the Non-Linear pro trainer gave the Quick Takes Video employees one day training. Despite reading the manual and watching the manufacturer video on top of this training, the employees are still having difficulty with the equipment. Obviously, the defects in manufacture are numerous. Had Non-Linear Pro applied...
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