Organization-Guide/Processes/03_Sales_Risk Control Matrix.md

Sales Risk Control Matrix

No.	R	Category	Risk Event	L	C	F	Cause	Mitigation Type	Mitigation Strategy	L*	C*	Changes	Comments	ES	EY	Evidences
1	Sales	Operational Risk (Sales)	Invalid offer	1	1	Many times a day		Preventing (System)	Use default offers.	1	1			yes	yes
2	Sales	Operational Risk (Sales)	No flexibility in case of none-standard customer requests.	1	1	Many times a day		Preventing (Manual)	Custom offers for customers.	1	1			yes	yes
3	Head of Sales / Head of Finance	Operational Risk (Sales)	Prices too low / discounts too large	1	5	Many times a day		Preventing (System & Manual)	Default prices and standard discounts are stored in the IT system responsible for the offer generation.	1	1			yes	yes
4	CEO	Operational Risk (Sales)	Prices too low / discounts too large	1	5	Many times a day		Preventing (System & Manual)	Deviations from the pricing policy require additional electronic approval in the system by the head of sales or head of finance. Without this electronic approval the offer cannot get created.	1	1			yes	yes
5	Head of Sales / Head of finance	Operational Risk (Sales)	Default prices are too low / default discounts are too large	1	5	Many times a day		Preventing (System & Manual)	Changes to default prices and default discounts can only be entered into the IT system by the head of sales or head of finance.	1	1			yes	yes
6	Sales	Operational Risk (Sales)	Changes to offers, order confirmations, offers etc.	1	1	Many times a day		Preventing (System)	Changes are only possible as long as they are not marked as delivered in the IT system.	1	1			yes	yes
7	Sales	Operational Risk (Sales)	Other aspects of the offer are invalid (i.e. wrong customer, bad credit score of customer, ...)	1	5	Many times a day		Preventing (System)	The offer is none-binding and only becomes binding with the order confirmation where additional checks are performed.	1	1			yes	yes
8a	Sales	Operational Risk (Sales)	Invalid order from customer (e.g. changes to the offer)	1	1	Many times a day		Preventing (Manual)	The order from the customer must be checked by a sales clerk.	1	1			yes	yes
8b	Sales	Operational Risk (Sales)	Invalid order from customer (e.g. changes to the offer)	1	1	Many times a day		Preventing (System)	Online orders from the shop are automatically generated by the IT system according to the allowed prices and products etc.	1	1			yes	yes
9	Sales	Operational Risk (Sales)	Invalid tax calculation	1	1	Many times a day		Preventing (System)	The IT system automatically calculates the taxes based on the item and customer settings.	1	1			yes	yes
10	Sales	Operational Risk (Sales)	Invalid automatic tax calculation	1	1	Many times a day		Preventing (Manual)	An accountant can adjust the taxes if necessary.	1	1		This can be necessary for special cases such as chain transactions.	yes	yes
11	Head of sales	Operational Risk (Sales)	Changes between order confirmation and invoice.	1	1	Many times a day		Preventing (System & Manual)	Changes between order confirmation and invoice must be approved by the head of sales before the invoice can get created.	1	1			yes	yes
12	Accounting	Operational Risk (Finance)	Invalid posting.	1	1	Many times a day		Preventing (System)	The IT system automatically generates the posting for invoices based on item and customer settings.	1	1			yes	yes
13	Accounting	Operational Risk (Finance)	Unpaid invoice.	1	1	Every 2 Weeks		Revealing (System)	The IT system automatically generates reminders every 2 weeks.	1	1			yes	yes
14	Accounting	Operational Risk (Finance)	Customer continues to receive products despite not paying invoices.	1	1	Every 2 Weeks		Preventing (System)	The IT system automatically locks the customer account preventing further customer orders.	1	1			yes	yes
15	Accounting	Operational Risk (Finance)	Customers don't pay after reminder.	1	1	Every 2 Weeks		Revealing (Manual)	Invoices can get handed over to a lawyer for collection based on the decision of the head of finance.	1	1			yes	yes
16	Accounting	Operational Risk (Finance)	Invalid payment matching.	1	1	Many times a day		Preventing (System)	The IT system generates suggestions for matching payments with customers/invoices.	1	1			yes	yes
17	Accounting	Operational Risk (Finance)	Invalid payment suggestion matching.	1	1	Many times a day		Preventing (Manual)	The account can manually adjust the payment matching.	1	1			yes	yes
18	Sales	Operational Risk (Purchase)	Missing customer information (e.g. important tax information)	1	1	Many times a day		Preventing (System)	The IT system requires mandatory information before invoices and order confirmations can be created for a customer.	1	1			yes	yes
19	Sales	Operational Risk (Purchase)	Invalid customer information	1	1	Many times a day		Preventing (System)	The IT system performs automatic checks.	1	1			yes	yes
19a	Sales	Operational Risk (Sales)	Invalid customer data	1	5	Many times a day		Preventing (System)	Customer data gets compared with the information provided from credit rating agencies, company registration forms etc.	1	1			yes	yes
19b	Sales	Operational Risk (Sales)	Customer default	1	5	Many times a day		Preventing (System)	Only customers with a credit score of XXXX-Crefo / XXXX-Coface / XXXX-Schufa get approved during the order confirmation.	1	1			yes	yes
20	Head of sales	Operational Risk (Purchase)	False positive customer errors.	1	1	Many times a day		Preventing (Manual)	Manual customer approval by head of sales	1	1			yes	yes
21	Sales	Operational Risk (Purchase)	Critical changes to customer (e.g. sanctions)	1	1	Daily		Preventing (System)	The IT system automatically checks customers against sanction lists every day.	1	1			yes	yes

Abbreviations

• R: Responsible

• L: Likelihood (1-5)

• C: Consequence (1-5)

• L*/C*: Likelihood and Consequence after mitigation

• F: Frequency (many times a day, daily, weekly, monthly, annually)

• ES: Effective

• EY: Efficient

2022-01-01 - Version 1.0