THE ELITE GROUP

Victoria F Siyachitema 149086 By Amanda V Shoko 147443 Morgan S Manjonjori 142906 Ndimenhle Siziba 147293 Victoria F Siyachitema 149086

overview Company Background Mission Statement RMIS Enterprise Risk Management How they manage ERM Financial risk management Credit, liquidity, currency How they manage FRM Operation Risk Political Risk How to manage it Human Resource management How to manage HRM

Company Background KPMG operates as a global network of independent member firms offering audit, tax and advisory services; working closely with clients, helping them to mitigate risks and grasp opportunities. While the origin of the name KPMG is based on the abbreviation of the names of some of the principal founding members; Klynveld, Peat, Marwick, Goerdeler, today the name is simply 'KPMG'. KPMG member firms can be found in 155 countries. Collectively they employ more than 189,000 people across a range of disciplines. The origins of KPMG in South Africa go back to 1985. Through organic growth and strategic mergers, the firm has grown into one of the largest firms in the region, offering a wide array of services to clients within the public and private sectors.

Mission Statement Our values create a sense of shared identity within the KPMG organization, which is a network of member firms in over 155 countries. They define what we stand for and how we do things.   Our values help us to work together in the most effective and fulfilling way. They bring us closer as a global organization. We lead by example We work together We respect the individual We seek the facts and provide insight We are open and honest in our communication We are committed to our communities Above all, we act with integrity

RMIS Improving operational excellence is crucial to achieving competitive edge and delivering.. The race is on to provide increased levels of customer service, to reduce operational costs and to help enhance assurance that processes are working effectively. At KPMG we understand the need to keep pace with technology and take advantage of the opportunities offered by technology innovations.

Enterprise risk Ensure product development Improve client expertise Get more done with less: Optimised use of resource and talent Data becomes knowledge Create sustainable value for shareholders Pricing and underwriting guidelines

How KPMG manages this risk Innovative ideas create new perspectives In depth experience allows for an acceleration of the implementation process Ready to go tools to analyse impacts and deviations Access to industry expertise and benchmark information

Financial risk management Financial risk management is a process that entails companies setting up guidelines to define their policy on accepting financial risk

Types Financial risk faced by KPMG Credit risk Credit risk is also referred to as default risk. This type of risk is associated with people who borrowed money and who are unable to pay for the money they borrowed. As such, these people go into default. Investors affected by credit risk suffer from decreased income and lost principal and interest, or they deal with a rise in costs for collection . KPMG faces this risk mainly in bonds investments.

Liquidity risk Liquidity risk involves securities and assets that cannot be purchased or sold fast enough to cut losses in a volatile market. Asset-backed risk is the risk that asset-backed securities may become volatile if the underlying securities also change in value. The risks under asset-backed risk include prepayment risk and interest rate risk.

Currency risk It is commonly referred to as exchange-rate risk, arises from the change in price of one currency in relation to another. KPMG have assets or business operations across national borders are exposed to currency risk that may create unpredictable profits and losses.

How KPMG manages financial risk Hedging : shifting risk to other parties by the using derivatives like options, futures, forward and default swaps   Diversification investing in different assets and globally KPMG does not invest some funds and are kept as cash for emergency.

Operation risk events are the leading source of financial losses, regulatory fines and reputational damage in most organisations.  caused by failure to deliver sound business practices, inability to execute and deliver core business processes, fraud events and inability to operate during a prolonged business disruption. To eliminate this risk KPMG operations assist clients to achieve a strong operation risk management framework. Better decision making

Political risk Political risks are uncertainties to business objectives, created by political actors or political conditions  can stem from international organisations, governments, non-governmental organizations, state-owned enterprises The aim of political risk assessments is to assist companies and those charged with the strategic management of companies to identify, assess, mitigate and manage political risks. Examples, War and terrorist activity, taxation, state policies etc.

How KPMG TACTLES THIS Identification of political risks and opportunities Qualitative AND quantitative assessment of identified political risks on business.

Human resources risk Attracting and keeping the talented and skilled employees is one of the most important challenges organizations face in today’s dynamic business world. No strategy, no matter how well designed, will work unless you have the right people, with the right skills and behaviors, in the right roles  Companies can develop a competitive advantage trough the skills and competencies of its people.  In order to keep this competitive advantage an organization has to work structurally on the development of employee competencies and behaviors in order to increase the performance of your organization

What KPMG does KPMG’s Strategic Human Resources Management (HRM) focuses on the optimal design of the HR function within the organization and the transformation into a strategic function. By this they develop: a flexible, responsive and efficient organization structure that meets the demands of an ever- changing marketplace. the workforce so that it has the required skills, competencies and behaviors to be competitive. Positioning the Human Resource function as a key role in helping an organization achieve its strategy.

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