Risk management plan

General Risk Management Plan

Objectives

The financial and accounting operations of the company serve an essential role by which the calculation, appraisal, information, management, and monitoring of cash, liabilities, and equity and the results of economic operation may be carried out. Risk-management mechanism maintains frequent monitoring of risk management and the identification of appropriate control mechanisms to minimize risk, which alerts the company's management of risks arising or changes in risk that have been already managed. The scope of this report is to evaluate the risk management plan based on AS/NZS 5050:2018 which is correlated to the action plan to implement the technology of ERP cloud system in the manufacturing unit to mitigate the accounting risks.  The report comprises of the benefits, hazards, unknown factors of technology, the risk management process, the process for the organisations response, the risk review process, and risk reporting all merging towards an action plan where the current risk status is measured, the proposed treatment of the risk, its vulnerabilities, the process to treat risk, and finally defining the importance of each step in the line of the risk theories and models. Effective risk control would guarantee the stability of business activities in the organization and effectively protect stakeholders from relevant security disruptions. 

Benefits

• The subscription model that usually includes not only the software but also the storage and maintenance costs, is used rather than an upfront payment for the cloud-based ERP-Enterprises. The initial investment expenditures required for deployment are often considerably smaller than for traditional systems and can often also be offset by operational costs (Utzig, Holland, Horvath, & Manohar, 2013).
• Rapid deployment is a major benefit as compared to traditional systems which were the major drawback of the system. Cloud ERP provides a simple setup with a small number of options that meet most businesses' needs — an approach that can minimize implementation time dramatically while still meeting the company's most important needs (Duan, Faker, Fesak, & Stuart).
• Flexibility and stability are other benefits of the cloud ERP system as it appropriate for companies that are improving their processes (Parthasarathy, 2013) which is appropriate in the setting of a clothing and textile manufacturing company that is constantly evolving with their processes.  
• Cloud Computing uses all of the data to guarantee consistent efficiency and reliability using robust servers. It helps you to turn back your data as the main and launch service automatically and instantly on powerful other servers (Wyslocka & Jelonek, 2015).

Hazards

• The data collected by the cloud storage service is likely controlled by the malicious third parties due to shortcomings and vulnerabilities of the computer equipment, the network topology, and physical facilities (Molnar & Schechter, 2010).
• Organisations often run the risk of not monitoring your records, not even knowing where it is stored, and of not being able to fulfil your legal obligations. The data you transfer to the cloud environment has been provided to the service provider's expert staff (Agarwal & Agarwal, 2011).
• When a cloud service provider demands conversion, storage and software transmission issues are severe due to factors such as the lack of proper standardization in cloud service provider software programming interfaces and storage loading of database systems unique to service providers the issue of the transition of information from one cloud device to another (Korkmaz, 2010).