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We started our term in Risk Management in a

corporate setup for us to feel what it is like in the


corporate world. During the first meeting, Dean Quisaot
taught us the RASA technique — where R means
repetition; A means association; S means simulation; and
A means application. I learned a lot in this simple
technique because in learning, you wouldn’t just learn in a
single session. Champions take a lot of training to become
the greatest of all time. It took them a lot of hard work and
repetition — and it applies to all of us. After learning about
the first letter which is R (repetition), the next thing you
should do is to associate yourself which is the next letter, We then briefly discussed about accounting and its
A (associate) tells us about. You have to associate yourself activities. We discussed the interrelationship between
with others as that could help you widen your knowledge financial statements where the Balance sheet which is the
and learn more from the experiences of others. Next cumulative total of the account from start to business,
would be the S, which means simulation. Of course, in puts its amount to be balance based. While the Income
order to apply what you have learned — you have to Statement, which records a firm’s revenue and expenses,
simulate first, like what pilots do. In order for them to is transaction based. The three types of cash flows which
master flying an airplane, they always do simulations prior is the Operating, Investing, and Financing cash flows were
to the realistic flight. In businesses, they also do also discussed. Operating Activities are cash that is
simulations. Before a company releases a product, they do generated in relation to the day to day operating activities
prototypes first to test and see how it would go if it will be of a business. For example, paying the advertising expense
released — for them to see if improvements will be for your business. Operating is related to the net income
applied. The last would be application. After mastering or of the business. In Investing Activities, these show the
applying improvements, you may now apply what you investment a business does — like buying or selling assets
have learned in the last steps. The whole FIN-111 class and other investments like buildings and these activities
together with Dean Quisaot simulated a corporate setting relate to the business’ non-current assets. Financing
so that we will learn and apply our knowledge and Activities are transactions with creditors for the company’s
etiquette in the corporate world. expansion or operations. (MyAccountingCourse, 2019)
These activities include issuance of shares or preferred We then proceeded to discuss about risk by letting
stock, or paying dividends and are related to the business’ each student of the class to give the meaning of risk in our
non-current liabilities and equity. own words. I answered that “Risk is the probability of how
the basketball won’t go in when you shoot it into the
After discussing about Basic Accounting, we then basket”, but there is one statement that caught our
moved on to the four functions of management which attention and it was made by Popei, one of the brilliant
include Planning, Organizing, Leading, and Controlling. minds of our Fin-111 class. Popei said that, “Risks are
Dean Quisaot discussed that Planning includes factors that change the certainty of achieving of achieving
Forecasting, which will help the business predict its future the objectives”. I agreed on this because I remembered the
whether it will be on sales, operations, etc. Developing time when I was running late in going to school for my
Objectives, which will allows the company to set its goals. presentation and I had the choice to take the MRT or the
Programming, which are the action steps in order to bus. By taking the bus, it give me comfort by sitting down
achieve the company’s goals. Budgeting and Scheduling and feeling the coldness of the aircon. In taking the MRT,
where the company will allocate its resources and set its it would take me to my destination on time. Both of these
deadlines to achieve its objectives. Lastly, Developing options make positive outcomes, but there are factors as
Procedures, this is where the company implements all of Popei said in his description of risk. The bus would make
its policies and guidelines that it had set for it to work the duration of my travel longer — and it would cause me
towards its goal. Organizing is simple; it relates all the to be late in school. While the MRT, might malfunction or
functions of the company, including its employees, get crowded and make me look unpresentable for my
stakeholders, and creditors. This is also where they find report. I related these factors that could change the
the right people to do the job. Leading is where the outcome of my objective which is to go to school and
company makes decisions, communicate with teams, and present my report. That is how I quickly relate to Popei’s
developing its people. Controlling is when a company sets definition of risk.
or develops a performance standard like developing the
KPI, or asses performance reports in order to monitor its
performance. The class have discussed these functions as
these are important in tackling the different topics of Risk
Management.
As we went further, Dean discussed that Risk is While the external crisis pertains to the events that are out
always associated with objectives. There are also two of the company’s control.
kinds of risks which are the controlled and uncontrolled
risks. Controlled risks are the chances of factors that can Nia and I reported about Risk Control and its tools.
be reduced or avoided. While uncontrolled risks are said An article in investopedia says that Risk Control is the set
to be unavoidable. An example of an uncontrolled risk is of methods by which firms evaluate potential losses and
when an man is open to a heart disease due to his old age. take action to reduce or eliminate such threats. We also
The two types of risks were also discussed, the Upward discussed how it works. First we discussed about Risk
Risk and the Downward Risk. Upward risks are the factors Avoidance which is said to be the best method of loss
that could make a positive effect or an opportunity in control because it mostly eliminate the risk. An example of
achieving an objective. For example, the risk of a stock it is a bank that avoids to open in a country that is full of
price that could elevate. While, downward risks will lead terrorism. Next would be Loss Prevention as it seeks to
to a threat. accept a risk but attempts to minimize the loss rather than
eliminate it. An example of a loss prevention is storing an
We then moved to the first topic which is the Basic inventory into a warehouse to reduce the possibility of a
Concepts of Risk Management which was reported by Ram theft. Even though it is unavoidable, a loss prevention is
and Dej. They discussed the Risk Management Process put in place to minimize the loss. The next technique is
which are the assessment or analysis of any possible risk, Loss Reduction, it accepts the risk and seeks to limit losses
followed by the evaluation, then the critical response when a threat occurs. One good example of it is teaching
where you come up with the solution in either preventing the employees how to use fire extinguishers, so that when
or mitigating a risk. They also discussed about Crisis a fire occurs, the amount of loss will be minimized. Lastly,
Management which is a process which organizations deal Risk Duplication involves creating a backup plan, often by
with emergencies. It is the part of Risk Management that using a technology. An example of it is when a company
deals with when the risk actually happened. The crisis is makes use of a disaster recovery device.
divided into two which are the internal and external crisis.
An example of internal crisis is when an employee inside a
company suddenly gets into an accident — in result, the
company would be held liable to the employee’s injuries.
In our last meeting, Dean Quisaot taught us five
steps in avoiding a risk.