This article walks you through the basic functionalities of the risk app. By the end, you will be able to effectively track all tax risks within your organisation.
Would you like to take a quick tour? Check out the 3 min announcement video by Stevi, CEO and Co-founder of Loctax.
The risk management app consists of two main pages: the dashboard and the risk page. This article focuses on the dashboard.
The dashboard summarizes and aggregates the open risks that have been captured. Closed risks are not included in the dashboard, except for the trend analysis graphs.
🚨 It's important to note that the dashboard will always show figures based on the selected period in the top right corner. When reviewing your risks, always make sure that the correct period is selected.
Let's review the cards at the top of the page:
Total net exposure: This is the total sum of the total net exposure amount in the group currency of the most recent risk assessment for each risk (based on the period selection made). A risk can have multiple risk assessments, but we only consider the most recent one. The total net exposure is automatically calculated based on the amounts in the risk assessment.
Non-quantified risks: This is the number of open risks without a total net exposure. This number gives you more context on how many risks are currently not quantified.
Total high risks: This number includes both high and very high risk levels.
The donut chart of "Total tax at risk" gives a breakdown based on the risk level.
You can review your Risks by tax scope from two angles. First, we count all risks by scope to give you information on how many risks were identified. Second, we calculate the total amount per tax domain. Both figures help you to better understand the risks you are dealing with.
The Risk level matrix gives you a detailed breakdown of all risks where the risk assessment has a probability of loss and an impact level. Both values are plotted on a matrix to give you an easy-to-understand snapshot of the risk exposure of the organization.
The map in the Risk by country section provides an overview of all countries with active risks. You can zoom in and out using the plus and minus buttons in the bottom right or by scrolling.
The Risk trend analysis shows the risk assessments for each tax domain. You can choose to see the assessments by count or by amount, where the amount is the total net risk exposure. If a risk has multiple assessments, each one will be included in the trend analysis. This graph helps visualize how new case law, rulings, and mitigation strategies impact the amounts at risk.
The last panel displays all risks labeled as Uncertain tax position. The methodology of the graphs is the same as the ones above, but here we focus solely on uncertain tax positions (UTPs). To label a risk as a UTP, go to the "risk details" tab and scroll down to the "General information" panel. There, you can indicate that the risk is a UTP. See the screenshot below how to label a risk as UTP.
