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Corporate Governance and Risk Management - Assignment

   

Added on  2021-06-15

9 Pages2096 Words25 Views
Running head: CORPORATE GOVERNANCE AND RISK MANAGEMENTCorporate Governance and Risk ManagementName of StudentName of UniversityAuthor Note

1CORPORATE GOVERNANCE AND RISK MANAGEMENTTable of contents1. Describing the actions taken by the senior managers............................................................22. Examining the areas of concern in the remuneration plan of TAB........................................23. Evaluating actions taken by the ASIC during the financial planning scandal.......................34. Discussing the role of social media in promoting good governance.....................................45. Discussing the importance of good whistle blower protection policy...................................46. Challenges faced by TAB in promoting ethical behaviour....................................................5Bibliography...............................................................................................................................7

2CORPORATE GOVERNANCE AND RISK MANAGEMENT1. Describing the actions taken by the senior managersThe case study highlights the illegal activities committed by Terra Australis Bank(TAB). The forging of the documents and manipulation of the files of the clients were someof the activities undertaken by the bank with an aim of earning a high commission as well asa bonus. Thereby, the people of Australia had to suffer as their life savings were underjeopardy. The risk involved with the bank is that about 38 of its planners have been classifiedas having a critical risk. The risks identified were mainly due to the non-compliance withproper financial planning. The actions taken by the managers, in this case, were insignificantas, despite complaints made by Joe Bloe on Don, manager of TAB chose to ignore the issue.Complaints from clients were also made on Don but despite this in October 2008, Don waspromoted was promoted to being the Senior Financial Manager. Despite several articles aboutthe incompetency of Don, the mangers of TAB took no actions to make the matter better.Therefore, the risk of increased fraud and loss of customers became a high level for thecompany. Sam Venus, who had made a public apology could have taken serious actionsagainst Don and forced the company to undergo a complete change in the company. Despiteproviding compensation to the victims, it is required that the loyalty of the customers isearned by making drastic changes in the process of the company.2. Examining the areas of concern in the remuneration plan of TABThe case study suggests that TAB depends on the bonus as its remuneration plan.These are depended mainly on to the short-term initiative schemes that define the company.According to Calomiris and Carlson (2016), a bonus is usually the compensation receivedafter a good performance of the employees. In this case, the bonus of the employees usuallyresulted from convincing the clients about investing in the company. Therefore, clients wereforced to take risky schemes for the betterment of the lives and for improvement of the

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