PROBABILITY OF RISK OCCURRING

# Processes RISK
Likelihood

Cannot occur / no
Unlikely to occur
Somewhat likely
Likely to occur
Very likely to occ
FORMULA = LIKELIHOOD+ PREVI
1 WHD PILFERAGE / THEFT 5

2 WHD EXPIRED PRODUCTS / NEAR 4

3 WHD WAREHOUSE STOCK INVENTORY INACCURACY 5

4 SALES POOR MARKET HYGIENE 5

5 IT OUTDATED COMPUTER SYSTEM 5

6 HRD MANPOWER ATTRITION 5

7 CAC LOST INVOICES 5

8 HRD SOCIETAL AND LEGAL 4

9 CAC OVERDUE ACCOUNTS RECEIVABLES 5

BILITY OF RISK OCCURRING CONSEQUENCE (IF RISK ENCOUNTE
PROBABILITY
Previous RATING
occurrence A B C

Has never occur 1 None / NA None / NA None / NA

Has not occurred 2 Minor Possible Minor
Has occurred in 3 Moderate Definite Moderate
Has occurred in 4 High High High
Has occurred in 5 Very High Legal Risk Very High
IKELIHOOD+ PREVIOUS OCCURRENCE/2 FORMULA= A+B+C+D+E+F/6
5 5 4 1 4
4 4 1 1 1
5 5 1 1 5
5 5 1 1 1
5 5 1 1 1
5 5 1 1 1
5 5 1 5 1
4 4 5 1 5
5 5 1 1 5
NCE (IF RISK ENCOUNTERED) OVERALL
CONSEQUENCE
D E F RATING RATING
None None / NA No impact / NA 1 1
Minimal Minor Minimal impact 2 4
Moderate Moderate Moderate impac 3 9
Severe High Big impact 4 16
Very severe Very High Extreme impact 5 25
MULA= A+B+C+D+E+F/6
1 1 4 3.17 15.83
1 1 1 1.67 6.67
1 1 4 2.83 14.17
1 1 1 1.67 8.33
1 1 4 2.17 10.83
1 1 4 2.17 10.83
1 1 4 2.83 14.17
1 1 4 3.50 14.00
1 1 4 2.83 14.17
 PROBABILITY OF RISK OCCURRING

Likelihood
MITIGATION PLAN
Cannot occur
Unlikely to oc

RATING IS Somewhat like

10 AND ABOVE Likely to occu

Very likely to
FORMULA = LIKELIHOOD+ PREVIOUS
2
STRICT COMPLIANCE WITH THE SOP OF PREPARATION AND DISPATCHING OF GOODS

2
CONSISTENT PRACTICE OF FIFO

1
REGULAR MONITORING OF EVERY ACCOUNTS BY SALES AGENTS

1
REGULAR TRAINING AND COORDINATION WITH THE PRINCIPAL

IMPROVE (OR BENCHMARK VS. INDUSTRY PRACTICE) CURRENT COMPENSATION AND 2

BENEFITS PACKAGE OF EMPLOYEES

1
STRICT IMPLIMENTATION OF PROPER FILING OF INVOICES INCLUDING ISSUANCE
CONTINUES COORDINATION WITH THE LEGAL CONSULTANT FOR ANY MOVE THAT WILL
HAVE CONCERNS WITH ANY LEGAL. 2
BABILITY OF RISK OCCURRING CONSEQUENCE (IF RISK ENCOUNT
PROBABILITY
Previous RATING
occurrence A B C

Has never occur None / NA None / NA None / NA

Has not occurred Minor Possible Minor
Has occurred in Moderate Definite Moderate
Has occurred in High High High
Has occurred in Very High Legal Risk Very High
LIKELIHOOD+ PREVIOUS OCCURRENCE/2 FORMULA= A+B+C+D+E+F/
5 3.5 2 1 2
4 2.5 1 1 1
5 3.5 1 1 2
5 3.5 1 1 1
5 3 1 1 1
5 3 1 1 1
5 3.5 1 2 1
4 2.5 5 1 2
5 3.5 1 1 2
ENCE (IF RISK ENCOUNTERED)
CONSEQUENCE
D E F RATING

None None / NA No impact / NA

Minimal Minor Minimal impact
Moderate Moderate Moderate impact
Severe High Big impact
Very severe Very High Extreme impact
MULA= A+B+C+D+E+F/6
1 1 4 2.50
1 1 1 1.67
1 1 2 2.00
1 1 1 1.67
1 1 4 2.17
1 1 4 2.17
1 1 2 2.00
1 1 2 2.67
1 1 2 2.00
RISK FACTOR
AFTER
MITIGATION

8.75
4.17
7.00
5.83
6.50
6.50
7.00
6.67
7.00