The Company’S Board Of Directors Plays A Determinative

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The company’s Board of Directors plays a determinative role is assessing the company’s internal and external risks. The effective risk management is an integrated part of the company’s successful business performance. The Board is ought to identify, measure, and manage the potential risks and hazards. The Board ought to evaluate the efficiency of the company’s internal controls’ management, its strengths, and weaknesses. The Board of Directors decides on the scope of the actions necessary to maximize the efficiency of the internal controls’ management. The Board needs to evaluate the existing and potential risks and company’s capabilities to manage those risks. Additionally, the Board needs to evaluate whether the company can adjust to the…show more content…
108). The Policy and Compliance Review Board assesses and mitigates the company’s risks. The GE Blueprint Reviews are company’s business planning studies. The blueprint reviews evaluate the company’s objectives, organizational performance, operating performance, and overall risks. Out it shortly, “risk assessment and risk management are the responsibility of the Directorate and are carried out through risk managers who are operationally integrated into each of our business” (GE, 2017, p. 108). It is essential to realize that the GE Energy Rentals business is a valuable part of the GE businesses. The GE’s risk managers assess the GE Energy Rental’s risks through the application of the company-based risk management processes.
The Audit Committee ensures the following corporate practices to evaluate and manage the company’s risks efficiently: meetings, review of periodic reports, quarterly review of CEO and CFO Certification Process, review of Earnings Releases and Information Provided to Analysts and Rating Agencies, approval of audit and non-audit services, hiring guidelines for the independent auditor employees, conflict of interest review, etc. (GE, 2008, p. 8). The nature of the risks determines the risk mitigating strategy and practice, for instance – “delegation of authorities, standardized processes, and strategic planning reviews operating reviews, insurance, and hedging (GE, 2017, p.

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