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Sy s fish organization risk evaluation essay

As Sy’s business grows there are certain risks and that should be acknowledged and addressed in order to make operations run smoothly and efficiently. Below are the risks which have been identified and recommendations to mitigate these people.

Risk: Mailing documents to Sy through mail.

There is a substantial probability the documents could be lost and then the transactions hardly ever recorded. Email can take up to a week to get so the time would be affected. Transactions can be recorded in the wrong period and changes would have to be created to correct this.

Advice:

Sy should put into practice an information technology system so documents can be recorded promptly and not dropped in the email.

Risk: Come back policy

There is not a limit of days a customer has to return the fish. A buyer can purchase fish, of course, if they are miserable three months afterwards, they can go back the fish for a full refund no questions asked. This really is a risk because buyers can take good thing about this policy therefore influencing sales revenue.

Recommendation:

Sy provides only new fish to customers. For this reason, he must change his return insurance plan to 15 times. This will make certain that customers tend not to wait to return fish months later following the fish has gone bad.

Risk: Bookkeeping and Job Responsibility

Every one of Sy’s bookkeeping is done by various personnel from various stores. Having employees via various places doing various areas of bookkeeping is risky because not one person is held responsible. Transactions can not be collaborated by beginning to end until all of the paperwork can be received via each individual.

Suggestion:

In the event that Sy plans on growing his business he can going to need to hire even more employees to assist with the accounting. He should have separation of duties to prevent falsifying info. All the accounting should be done in one location.

Internal controls ought to be set up for the process of documenting transactions.

Risk: Accounts payable procedure

Natalie keeps all the miscellaneous payable paperwork for repayment at the end of the month. She records the document staying received about the same day the lady issues payment. This is a risk since it effects what period the documents are recorded. Natalie pays most fishers in one lump sum instead of separating every payment. This is risky because it could be noted incorrectly and there is no way to learn which purchase was insight wrong.

Advice:

Your woman should record each assorted payable file on the time received plus the date paid out should be when the check was written. She should record each fisher payable document individually.

Risk: Bad Personal debt

Sy does not learn how much every single customer owes or whenever they will receive repayment. This is a risk because he will not be capable to account for poor debt.

Advice:

This individual should call and make an accounts receivable ledger to study which consumers have not paid out and how long they are missed. By keeping data it will be easier to account for bad debt.

Risk: Payables bank account

Profit the payables checking accounts that has not been said cannot be followed back to the seller. This influences revenue acknowledgement and is a risk since Sy would not know exactly where this funds is going.

Suggestion:

There should be a record of what vendors have cashed all their checks. Put into action a direct first deposit system to pay distributors and fisherman.

Risk: AFS securities

There is no records on Sy’s AFS investments. There are not any footnotes or explanations on the beginning balance sheet (Appendix 1). This is a risk because exterior users have no idea of where Sy’s investments are getting. If you will discover no footnotes or explanations for the security investors they could not want to take a position.

Reccomendations

Sy needs to add additional disclosures to explain his reliability and what he intentions of doing with it.

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