CORPORATE GOVERNANCE AND RISK MANAGEMENT.

Running Head: CORPORATE GOVERNANCE AND RISK MANAGEMENT
CORPORATE GOVERNANCE AND RISK MANAGEMENT
Name of the Student
Name of the University
Author Note

1CORPORATE GOVERNANCE AND RISK MANAGEMENT
Table of Contents
Answer to Question 1.................................................................................................................2
Answer to Question 2.................................................................................................................3
Answer to Question 3.................................................................................................................3
Answer to Question 5.................................................................................................................4
Answer to Question 4.................................................................................................................5
Answer to Question 6.................................................................................................................6
Reference....................................................................................................................................7

2CORPORATE GOVERNANCE AND RISK MANAGEMENT
Answer to Question 1
The action taken and the behavior of the senior management were not satisfactory in
terms of enterprise risk management. At first when But Don has raised the issue to its
manager after witnessing the dishonest act by his colleague Dodgy Don, then the manager
brushed the issue aside due to the fact that the Don was under the protection of management
for his position as the top earner. Further, he has raised the issue to the middle management;
then again the response was vague and indefinite. Moreover, senior management has also
arranged certain documents for being processed by the legal department for giving legal
privileged. Apart from this, the management also pressurized Bloe for identifying who has
leaked the information to media. Hence, it was finding that, the senior management was itself
protecting the fraudulent acts of financial planners of the company (Bromiley et al. 2015).
The action that was taken by the senior management was not only inappropriate but
potentially high risk. It was because the senior management of TAB was encouraging the
fraudulent activities of the financial planner. It was due to their encouragement in terms of
bonus and commissions from indulging the client’s wealth in highly risky investment. The
biggest culprit here is the senior management because due to this encouragement, the client
has suffered great loss and the company gained their profit (Mikes and Kaplan 2014).
If I would be in position of Sam Venus, the steps that would be taken by me for
addressing the risk of the awareness of fraudulent activities in the origination would be not
support any kind of fraud activities in the organization, finding reasons of the fraud and
person involve in it and taking prompt and immediate actions in case of any whistle blowing
(Lam 2014).
The suggestions that can be given for the management of these activities by
mitigating similar risk in the future would be protection of whistle blower of the organization,