How to create a risk?
When you are on the dashboard or risk page, you will always find the "+ New risk" button located at the top right corner.
Once you click Save, the risk journey begins!
To create a risk, the only two mandatory fields are the "risk name" and the "country." All other fields are optional. Upon creation, an ID will be automatically assigned to each risk.
By default, the user who creates the risk will be its owner. However, you can easily change this later.
The risk page
The risk page contains several tabs: overview, risk details, timeline, documents, and tasks.
In terms of risk, the overview and risk details tabs are the most relevant.
Overview
The overview page serves as a cockpit to navigate through the risk. At the top, you can find the total net exposure, risk level, and the date of the last update.
You can also find more information on the risk description and mitigation strategy.
On the right, you can find the risk team. Each risk can have an owner and multiple subscribers. The subscribers do need to have a Loctax account. The user who created the risk is the default risk owner. The subscribe functionality helps you and your colleagues stay informed. Every subscriber is notified when the risk is edited. For example, if a new risk assessment is added, the status of the risk is changed, or a new update is created.
Below that, you can find a trend analysis of the total net exposure and an overview of all tasks linked to this risk.
Risk Details
The Risk Details page consists of three panels: Risk Status, Risk Assessment, and General Information.
Risk Status: This can be either Open or Closed. When a risk is closed, it will no longer be included in the dashboards. When changing the status, the timeline will be updated.
Risk Assessment: Each risk can have multiple risk assessments, allowing you to track the evolution of the risk. The risk assessments are ordered chronologically, with the most recent one on the left.
When a new assessment is added, the values of the previous assessment are automatically copied over, allowing you to edit only what has changed and avoid mistakes when copying the same data.
💡 We recommend always completing the probability of loss and impact, if possible. With this information, the risk level is calculated.
To add amounts to the assessment, toggle “Quantifiable risk”. If turned on, additional fields will appear to quantify the assessment.
General Information: In this panel, you can add supporting information to the risk. For example, you can link the risk to entities, years, tax in scope, audits, projects, and label it as an uncertain tax position.
💡 We recommend always indicating the tax in scope to improve the accuracy of the dashboards.