Risk Matrix

Risk Matrix

Introduction

  • A Risk Matrix is used during risk assessment to define the level of risk by considering the category or probability against the category of consequence severity. 
  • This is a simple mechanism to increase the visibility of risks and assist management decision-making.

There are 7 pre-defined rules given in Risk Matrix as given under:

  1. In-house asset (S82-85)

    • Loan by Super Fund:- >= 6% of total assets - Medium Risk

  2. LRBA (S67A & S67B)

    • Payables:- ≥ 70% of property value - Medium Risk

            Borrowing (S67)

  • Payables:- ≥ 5% of total assets if member balance is ≤500K - Medium Risk
  • Payables:-  ≥ 3% of total assets if member balance is between 500K to 1.2 million - Medium Risk

  • Payables:-  ≥ 2% of total assets if member balance is ≥ 1.2 million - Medium Risk

  1. Arm's length (S109)

    • Receivables >= 10% of Rental Income & Investment income and other income - Medium Risk

  2. 13.22C (S65)

    • Unlisted Investment ≥ 5% of net assets - Medium Risk

  3. Collectibles (Reg 13.18 AA)

    • Collectibles:-  ≥ 5% of Member entitlements or $50,000 whichever is lower - Medium Risk

  4. Asset value anomaly (Reg 8.02B)

    • If any item of unlisted investments, real property, collectibles, and loan by the super fund has ＞+ or - 100% variance - Medium risk

  5. Related Party (S66)

    • Loan by super fund unlisted investments plus collectibles is≥ 5% of net assets - Medium Risk


Notes
Note
  1. The average of all the rules will be reflected on the fund dashboard to denote the severity of the fund.
  2. If the majority of the transactions exceed the above rules then the fund will be highlighted as High Risk.
  3. If the majority of the transactions are below the rule then the fund will be highlighted as Low Risk.

  • This feature is used to reflect and highlight the risk of the job in the fund dashboard as well as in the prior year summary.

  • These 7 predefined rules given above can not be deleted though they can be disabled/enabled or edited as per the requirement. 

  • If required, completely new rules can be added further. The new rule which is not predefined and not available by default can be deleted and edited as well.



risk-matrix-rules


The above-mentioned set of rules will be added by default, you can edit them though they can not be deleted. Even while editing the existing rules, only the Condition, Percentage, and Risk Type can be edited.
You can add more sets of rules for other buckets if required. The added rules can be deleted or edited as well.
Though you can not delete the existing set of rules, you can disable or enable them.

How to Add Rule in Risk Matrix

To add more rules to Risk Matrix, follow the steps given below:
Step 1:- Click on Admin > Risk Matrix > Add Rule.

add-rule

Step 2:- Add Rule Name, Rule Reference, Bucket, Condition, Value Type, Base, and Risk Type and hit Save.

add-details-save

That's it, once saved, the rule will be added to your existing list.

How to Edit Rules in Risk Matrix

Step 1:- Click on Admin > Risk Matrix.
Step 2:- Now click on the Edit icon inline of the rule that you want to edit.

edit-rule

Step 3:- Now you will be able to see the details on the slider, change them as per your requirement and click on Update.

update-rule

Notes
Note:-
  1. You can edit only Condition, Percentage, and Risk Type if the rule that you want to edit already exists.
  2. If you want to edit the rule that you have added, you will be able to edit all the details.

update

How to Delete or Enable/Disable Rules in Risk Matrix

Step 1:- To delete any of the added rules, click on Admin > Risk Matrix and then click on the Delete icon. 

delete-risk-matrix-rule

Step 2:- Now click on Yes from the appearing pop-up to delete the added rule.

action-confirmation-pop-up

Step 3:- You will now receive a confirmation pop-up at the bottom of your screen.

risk-matrix-deleted-successfully

Step 4:- You can disable the existing rules by clicking on the toggle button but you can not delete them.

disable-risk-matrix-rule
enable-risk-matrix

That's it! 
​

To learn more about the process, explore best practices, and make the most of our features, please visit our Knowledge Base. Contact our Support team if you need any assistance.
​

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