Risky Business : Corporate Governance And Risk Management

2358 Words Oct 27th, 2014 10 Pages
Risky business: Corporate governance and risk management in the wake of the global economic crisis.

Word Count: 1500 (+/- 10%) not including references and quotes

Introduction

“A Chicago teenager is looking for fun at home while his parents are away, but the situation quickly gets out of hand” (IMDB, 2014). This is the logline for the Tom Cruise movie Risky Business. In the wake of the global economic crisis, questions are being asked if company’s were just having too much fun while the parents were away. Effective corporate governance and risk management are two systems that can help a company achieve greater productivity, profitability and growth. If mismanaged, they can possibly cause said company to collapse or negatively affect all stakeholders. Across the theoretical literature, there has been a shift in attitudes and now some question whether corporate governance was really at the core of the fault of the global economic crisis. It is presented that despite these growing literary trends, both corporate governance and risk management are causally linked and an imperative for the sme, new start up or global corporation. In addressing this issue, Risk management and corporate governance will be examined in detail with reference to current literature, opinion and supported by a few key case studies.
Case Studies

Case studies are an effective measure in building theory, according to Eisenhardt (1989). It is a research strategy that…
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