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