University of San Carlos - Downtown Campus

P. Del Rosario St., Cebu City

AC 1204 - GOVERNANCE, BUSINESS ETHICS,

RISK MANAGEMENT AND INTERNAL CONTROL

RISK MANAGEMENT PROJECT

SECOND SEMESTER
3:00-4:30 PM (TTH)
GROUP NUMBER: 2

Bahande, Trisha Mae G.

Baron, Anne Nicole Kathryn
Danuco, Justine Chloe N.
Estucado, Lorraine Marie
Uy, Nathaniel Jilson B.

PROFESSOR: MRS. MARILYN U. CORTES

May 7, 2019
IMPACT AND PROBABILITY MATRIX

High Medium Risk High Risk

 Failure of the program to  Lower percentage of CPALE

produce more graduates passers
I  Reputation of the USC’s BSA
program may be affected
M  Decrease the competence of
students
P 

A
C Low Risk Medium Risk

T 

Low PROBABILITY High

The matrix above shows the corresponding impact and probability of the risks associated
with the implementation of a new filtering program.

*please lang ko sumpay

SCENARIO

University of San Carlos has consistently dominated and topped the Certified Public
Accountant Licensure Examination and continuously bags high overall passing rates. Based on the
four previous board exams, USC has an average of a 97% passing rate from its 147 total number
of takers. In the CPA board examinations, USC now has nearly a hundred placers. Its first placers
in the past were Vicente Tiu (1983), Ailene Y. Lim (1988), and Sai Bo Lau (1995).

In line with this, the Department of Accountancy has implemented strict retention policies
for the program, Bachelor of Science in Accountancy. These retention policies are to heighten the
standards, challenge and improve the performance of Accountancy students. Some of these
policies include students achieving an individual grade of 2.0 or better in all core and professional
courses and also passing three (3) Program Advancement Readiness Tests (PART). These
comprehensive tests are predictive of an examinees’ success in the Certified Public Accountants
Licensure Examination (CPALE). Failure of students to comply with these would be advised to
shift.

Strict retention policies have greatly helped students to become better but has also resulted
to low number of graduates in the said program, ranging from only 2-3 blocks graduating each
year. From around 1,000 freshmen enrolling in the program, only a few will remain. Due to this,
the Board of Directors are re-assessing these policies and providing additional tests or
examinations after failure of students to comply with some of the policies. Examples of which
would be administering interviews to students who may fail the Program Advancement Readiness
Tests and assess how willing they are to continue with the program.

In this paper, the risks in implementing a filtering program which will increase number of
BSA graduates will be discussed.
OBJECTIVES

The implementation of the new filtering program to BSA students poses different types of
risks to University of San Carlos. It has its share of risks and opportunities and it is through this
risk management plan that risks will be assessed and thoroughly understood to find a way to
increase the likelihood of success and lessen the probability of failure. This risk management plan
will assess the risks which are associated with the implementation of BSA filtering program to
increase number of graduates. This paper seeks to:

a. Detect all risks – Identifying threats in the implementation of the said program. These
risks will be classified according to its type.

b. Analyze risk – it deals with the collection of data regarding risk exposure. The university’s
risk appetite will also be taken into consideration as it is essential in making the appropriate
decisions and in managing risks. Accurate analysis of the risks will help in implementing
more effective solutions, should the department push through and implement the program.
The impact and probability of each of the risks will also be discussed and will be utilized
in responding to the risks.

c. Control and manage risk – deals with the decision-making after thoroughly monitoring
the risks and all data. A call to action based on the informed decisions derived from the
collected data, will be implemented.

Furthermore, the implementation of the filtering program will:

a. Increase BSA graduates and the Certified Public Accountants, University of San Carlos
will produce
b. Provide opportunity to students who are willing to continue with the BSA program
c. Attract more enrolees because of the number of graduates it produces