(Solved): For the following 10 risk statements, identify the high-level business process to which it relates a ...

For the following 10 risk statements, identify the high-level business process to which it relates and potential business functions (where in the company the risks take place).

Business Process options : Purchases and payments processes, Conversion processes, Impacts all business processes, Sales and collection processes.

Business Function(s) options: All functional areas, Board of Directors and Executives, Customer Service, Human Resources, Information Technology, Internal Audit, Marketing Research, Payroll, Production Operations, Purchasing, Sales Department, Treasury Management. 

 

3. Because of sales staff members lacking knowledge about the features and benefits of a new service the company is selling, prospective customers are confused and don't subscribe to the service, resulting in decreased sales revenues. 4. Because of poor strategic planning, the business may not meet its earnings forecasts and may therefore suffer financial losses, reputational loss, and a decrease in its stock price. 5. If product reliability test failures exceed \( 5 \% \), the resulting schedule delay to fix failures would exceed two weeks, causing increased cost and customer dissatisfaction. 6. Poor short-term financial forecasts may result in cash flow issues, negatively impacting the company's credit rating and its ability to borrow at a reasonable cost. 7. Customer data theft caused by defective system changes could result in significant financial fraud losses due to fines, loss of customers, and regulatory sanctions. 8. Returns by customers in a superstore are at risk of being diverted, with the returned goods never reaching the warehouse, resulting in inventory shrinkage. 9. Because of inadequate background checks, an employee with a criminal background may be hired, with the potential for losses from fraud or theft in the workplace. 0. Because of inadequate timekeeping, employees could be paid for time not worked, resulting in fictitious costs and reduced profits.