In: Finance
You work for Australia Wide Taxations Solutions—a company of 1,500 employees offering taxation services in different cities across the country. The company offers five services: personal taxation, small business taxation, corporate services, personal wealth creation and corporate asset management.
It is working in a highly regulated and legislated industry.
You have been asked to work with the team conducting a risk assessment for the entire organisation.
How will you identify the risk management scope—what things do you need to look at? What challenges does a scope of this size pose and how would you approach the risk assessment process? (350–400 words)
Risk Managemet is the process of identifying, analysing, quantifying and managing the risk. this will improve the tax administration's effectiveness in dealing with the risk. As we know the main objective of tax admistrators to place stratigies and structures to make sure that non-compliance with tax law or tax fraud is kept to minimum possible.
As our company offers five services i.e personal taxation, small business taxation, corporate services, personal wealth creation and corporate asset management. There are several challenges whcih a company can face such as large number of taxable persons, different financial products, complexity and innovations in business structures etc. so in order to meet the challenges, we have to introduce the specific procedure. The following steps are used- IDENTIFICATION - it provides the list of potential risk, ANALYSIS- it helps us in providing with the impact on objectives, knowledge about the behaviour of taxpayers. ASSESSMENT- ranking and quantifying the risk. TREATMENT- process where the negative impact of the risk on the organisations objective is minimised. EVALUATION- monitoring different activities used in treating the tax.