Yakub02
Banned
Risk management -
A company may be exposed to a wide range of risks which might affect its ability to achieve its corporate objectives.
Risk management is a corporate governance issue. A board should safeguard the assets of the company and protect the shareholders’ investment from a loss of value. In order to achieve this, the board should manage risks.
The publication of information on risk management activities enables shareholders (and other stakeholders) to evaluate the importance that a company attaches to risk management and its effectiveness in managing those risks identified as significant.
Risk reports help boost shareholders’ confidence that the company has adopted a responsible attitude towards risk. ICGN Corporate Risk Oversight Guidelines The International Corporate Governance Network (ICGN) has issued guidelines on responsibilities for the oversight and management of corporate risk (2010). Key features are as follows:
the risk oversight process begins with the board.
The board is responsible for deciding the company’s risk strategy and business model, and it should understand and agree the level of risk that goes with this.
It should then have oversight of the implementation by management of a strategic and operational risk management system.
management has the responsibility for developing and implementing the company’s strategic and routine operational risk management system, within the strategy set by the board and subject to board oversight.
A company may be exposed to a wide range of risks which might affect its ability to achieve its corporate objectives.
Risk management is a corporate governance issue. A board should safeguard the assets of the company and protect the shareholders’ investment from a loss of value. In order to achieve this, the board should manage risks.
The publication of information on risk management activities enables shareholders (and other stakeholders) to evaluate the importance that a company attaches to risk management and its effectiveness in managing those risks identified as significant.
Risk reports help boost shareholders’ confidence that the company has adopted a responsible attitude towards risk. ICGN Corporate Risk Oversight Guidelines The International Corporate Governance Network (ICGN) has issued guidelines on responsibilities for the oversight and management of corporate risk (2010). Key features are as follows:
the risk oversight process begins with the board.
The board is responsible for deciding the company’s risk strategy and business model, and it should understand and agree the level of risk that goes with this.
It should then have oversight of the implementation by management of a strategic and operational risk management system.
management has the responsibility for developing and implementing the company’s strategic and routine operational risk management system, within the strategy set by the board and subject to board oversight.
