Corporate governance is more than a regulatory requirement for listed companies – it is widely accepted to be good business practice and has a value beyond compliance when organisations seize risk and make it work to their advantage.
Managing risk as part of good corporate governance makes companies more efficient, and gives stakeholders more confidence in a company’s future. In Europe and the US, a series of high-profile failures including fraud and accounting irregularities, have led shareholders to demand greater assurances that organisations are managing themselves responsibly and in a transparent way.
By meeting their corporate governance demands, companies can demonstrate they are well managed, identify threats to their corporate survival and provide stakeholders with confidence that the organisation’s strategic objectives will be achieved.
Critical questions you need to consider
- How are you addressing the risk management requirements under Corporate Governance?
- To what extent are you effectively communicating your existing risk management to both internal and external stakeholders?
- To what extent does your risk management and Corporate Governance consider the ‘total’ risk footprint of the organisation e.g. strategic issues?