Risk Awareness and Corporate
Governance
Recent revelations concerning
Enron and WorldCom have raised huge concerns over the inability or plain lack of will
among two major corporations to exercise proper governance of their exposure to risk,
financial reporting and other corporate activities. While the process of applying blame
for such spectacular collapses proceeds through the US judicial system it is appropriate
to offer a manual of the principles involved in risk management and corporate governance
to those studying or working their way up to positions of responsibility in corporate
banking and finance.
However it is defined,
corporate governance in relation to risk requires consideration to be paid to more than
just the needs of shareholders. Opinions may vary but the needs of the corporate's
customers, suppliers and other stakeholders not to mention its' overall financial targets
could all be said to fall under the remit of sound corporate governance.
This manual is therefore a
reliable guide to the principles of risk management for both banks and corporates and a
detailed analysis of the scope and requirements of corporate law and directors'
responsibilities.
Brian Colye is an experienced
writer and lecturer in banking, accountancy and law. For many years, he was an executive
director in a listed company specialising in professional training, and for some of that
time also acted as company secretary. He has written on a wide range of subjects,
including financial risk management, corporate governance, accounting and business law.
173 pages