Corporate Accountability Abc Learning Case Study

Corporate Responsibility contains 8 sections which senior executives take individual responsibility for the accuracy and transparency of the organization financial statements. In other words the executives cannot longer bounce responsibility for the inaccuracies of their financial reports, and it describes the communication between organization audit committees and external auditors.

Viewed as the most significant change to securities laws since the 1934 the Sarbanes-Oxley Act (also known as SARBOX or SOX) sought to address

Risk refers to a likelihood, probability, a chance that a loss may occur in a given organization. Most of the times, there is a high risk when there is vulnerability. In this case, vulnerability refers to a weakness that the organization has. Risk assessment refers to the process of identification of potential hazards and proper analysis of the expected losses if those hazards occur (Homeland Security, n.d.). Risk assessment as a way of profiling risk according to impact to the organization. Some organizations have business impact analysis exercises geared towards determination of potential hazards based risk assessment approaches. Organizations’ risk differ depending on the size and the type of business they are doing. The disparity in organizations’ risk call for different adaptation of risk assessment approaches. Even with the disparities of the businesses, proper risk management not only ranks the risks according to the seriousness but also identifies the best methods to control risks in an organization.

Risk Management issues are often handled at the facility where the problem(s) exist. One of the duties of Risk Manager’s is to communication and collaboration between departments within an organization in question. In addition, to sinking risks, and cutting costs in order to promote process efficiency .By analyzing incident reports is one way to correct current problems, and future problem areas. Risk managers are also responsible for certain criteria that must be met in order for full participation in certain government and state reimbursement programs ("World Health Organization," “n.d.”). Risk Management is a structured approach to managing improbability, related to a risk, through a structure of human interaction.

There are two main types of risk management assessments. They are qualitative and quantitative methodologies. With the qualitative methodology, a relative values are used to determine the probability and impact of a risk (Gibson, 2011). This type of information can be collected quickly. A quantitative risk assessment is used to estimate how much money would be lost should a vulnerability be exploited (Vanderberg, n.d.). With the quantitative methodology, actual dollar values are used. It can take a time to gather this type of data. Once the data is gathered, however, a math formula is used to determine the priority of risks and in turn show the results of controls (Gibson, 2011).

Risk management is an ongoing process that must continue through the life of a project. It includes processes for risk management planning, identification, analysis, monitoring, and control. These processes need to be reviewed throughout the project’s lifecycle as new risks arise throughout the implementation of the project. It is the objective of risk management to decrease the probability and impact of events adverse to the project. On the other hand, any event that could have a positive impact should be exploited.

Risk Management Procedure: Defining and summarizing the steps to respond to the risk during the project life.

The report, issued in March 2002, was shared with leaders on Capitol Hill, at the U.S. Securities and Exchange Commission and the stock exchanges, and was instrumental in helping shape the Sarbanes-Oxley Act signed into law four months later. Here are proposals for reform as offered by FEI:

Research shows that various risk management tools exist, ranging from the strict minimum to very comprehensive methodological (Harrison 1997). In different countries there are different methods applied in risk management, however the methodology is the same, systems characterization and description, threat and vulnerability identification, risk assessment and recommended

The analysis of this information determines that the company may predict the share value to increase.

First, a clear risk hierarchy was introduced which allowing the right people to manage the right risks. Second, the Quantified Risk Analysis controlled the contingency allocation. Key risks were forecast before they occurred which allow the management team to solve the problems in advance. In addition, sufficient contingency ensured the budget maintained as appropriate. Third, a clear and open reporting system created a healthy balance of review in the whole process. Last, assurance and audit promoted an honest culture of risk

Risk Analysis is a process for comprehending the nature of hazards and determining the level of risk.

The Board, in setting up its corporate administration standards, had respect to the ASX Corporate Governance Principles and Recommendations, and unless unveiled beneath the greater part of the Recommendations have been connected. The explanations behind any takeoff from these standards and Recommendations are clarified underneath. The Board aides and screens the business and issues of the Company for the benefit of the shareholders by whom they are chosen and to whom they are responsible.

Risk is a threat of destruction, injury, liability loss or any other negative incident caused by external or internal environments. Risk is unpredicted and nobody can guess it might happen in the near future. All of the projects exist risk and the project manager is responsible to identify those risk, which is a part of risk management planning process. Risk management is the procedure of distinguishing risk and reduce risk level. The risk management methodology decides the actions, strategies, instruments, and group parts and obligations regarding a particular task. A good risk management suggests control of possible future destruction and precautions for that risk. The risk management plan represents how administration will be organized and performed on the venture. As a management procedure, risk management is utilized to identify and preserve a strategic distance from the potential cost, timetable, and implementation or specialized dangers to a framework, take a proactive and organized way to deal with negative results. The risk management approach and arrangement operationalize these administration objectives.

As from now, with the growing economy and the wish to access to capital markets, it’s important to establish some approaches of Corporate Governance.