Strategic Risk Management and Corporate Governance
INTRODUCTION
As part of strategic decision-making, it is important to consider all the risks an organisation faces or is likely to face. Strategic Risk Management is about understanding risks, identifying them, responding, and setting effective control measures as part of a strategic plan.
Corporate governance is the collection of mechanisms, processes and relations used by various parties to control and operate an organisation. Corporate governance is, therefore, the system by which companies are directed and controlled. Corporate governance aims to facilitate effective, entrepreneurial, and prudent management that can deliver the company’s long-term success.
Boards of directors are responsible for the governance of their companies. The shareholders’ role in governance is to appoint the directors and the auditors and satisfy themselves with an appropriate governance structure. The responsibilities of the board include setting the company’s strategic aims, providing the leadership to put them into effect, supervising the management of the business and reporting to shareholders on their stewardship.
Therefore, corporate governance is about what the company’s board does and how it sets its values. It is to be distinguished from the day-to-day operational management of the company by full-time executives.
This course helps to provide you with the knowledge and skills to understand the fundamentals of risk management and apply them to your organisation or industry.