Module 1 Flashcards
What is value creation
benefits exceed costs
What is value preservation
sustained created benefits. ex) high customer satisfaction with profitable product
what is value erosion
value declines ex) unsuccessful launch of a new product
what is value realization
benefits received by stakeholders in monetary or nonmonetary form ex) increased profitability and stock prices
Where is core values in ERM
Govt and Culture
where is mission and vision in ERM
Strategy and Objective Setting
where is risk responses in ERM
Performance
Risk Response: Accept
No action taken to adjust severity of risk
Risk Response: Avoid
Remove the risk (i.e. leaving a line of business)
Risk Response: Pursue
Action taken to accept increased risk to achieve improved performance
Risk Response: Reduce
mgmt designs risk mitigating techniques to reduce risk
Risk Response: Share
reduce risk by outsourcing and getting insurance
Some process documents in revenue process
pick ticket, packaging slip, bill of lading, remittance advice
Some process documents in expenditure process
purchase order, receiving report, voucher (3 way check), also purchase requisition, and supplier invoice
5 steps of manufacturing process
- product design and engineering, 2. product development, 3. Manufacturing forecasting and scheduling, 4. Manufacturing operations, 5. manufacturing and fixed asset accounting and reporting
