RMO No. 9-2023: Prescribes the policies, guidelines and procedures on Enterprise Risk Management (ERM) in the BIR

Summary

RMO No. 9-2023 prescribes policies, guidelines and procedures on Enterprise Risk Management (ERM) in the BIR, adopting ISO 31000:2018 as its foundation.

Key points

1. Roles and coordination. Risk activities are coordinated with the ERM Coordinator (Management Division) and the Chief ERM Officer (ACIR, Planning and Management Service). Each Deputy Commissioner designates one ACIR as the group’s ERM Committee representative, and the CIR designates a Risk Management Sponsor for the Office of the Commissioner.
2. Risk appetite and assessment. MANCOM issues the BIR Enterprise Risk Appetite Statement. Services, Revenue Regions and RDCs conduct risk assessment and develop mitigation strategies annually or when deemed necessary.
3. Priority risks. Each Division, RDO or Unit shortlists its top three (3) priority risks. These roll up to the top five (5) priority risks of the Service, Region or RDC, and then of the functional group. Enterprise Risks are announced through a memorandum signed by the CIR.
4. Documentation. Risks are recorded in an electronic BIR Risk Information Sheet (BRisk InfoSheet) and the prescribed eRisk Register. Risk Managers keep an RM Manual and the ERM Coordinator keeps an ERM Manual, both following the RM Manual Template.
5. Reports. Divisions, RDOs and Units submit a status report on mitigation strategies by the 5th day of the month after each quarter. ACIRs, RDs and RDC Heads report on approved Enterprise Risks by the 10th day. The Management Division evaluates effectiveness by the 15th day of the month after each semester and calendar year.

Who is affected

• BIR officials acting as Risk Owners, Risk Managers and Risk Management Sponsors
• Services, Revenue Regions, RDCs, Divisions, RDOs and Units

Deadlines and effectivity

• Risk assessment annually or whenever deemed necessary
• Quarterly status reports due 5th and 10th day of the following month
• Effectiveness evaluation due 15th day of the month after each semester and calendar year

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.