Corporate Governance and Risk Management - Features and Benefits

Corporate Governance and Risk
management

Corporate Governance
Corporate governance refers to the practices that are implemented on business organizations
in order to improve the relationship between all their customers, stakeholders as well as
partners. There are different challenges and issues in every business and it is important to
maintain effective practices to help the business in facing the same. Such practices ensure that
all the business practices are transparent that reduces mismanagement at workplace and if
anything wrong will happen then all the top level management people will be liable. Corporate
governance helps in improving the routine business practices and leads in sustainable growth of
the organization.
Features of corporate governance:
Unambiguous business strategies- Corporate governance helps an organization in framing
feasible strategies so that the goals of the business can be accomplished. It also provides
assistance to the managers in creating marketing strategies to communicate the management
practices among general public.
Risk Management-Corporate governance helps in risk management as it helps in creating
policies regarding risk management to detect the risk possibilities in business. It also assists in
increasing the performance of the organization.
Social Responsibility- Corporate governance practice helps the organization to create a good
relationship with the customers by providing the best services and implement improvements
according to their feedbacks (Kochan & Schmalensee, 2003).
Transparency- It is important to have transparency in the organization. Effective corporate
governance practices help an organization in unifying the business process. By unifying the
process, it helps the customers to track and notice the performance of the organization.

Transparent business relationship is always good as it increases the trust and reliability among
customers.
I have a work experience of two years in ICICI Bank. This experience made me learnt so many
things about corporate governance that helps in growing business activities. It basically enables
transparency in the organization by organizing regular meetings with stakeholders.
Enterprise Risk Management
Enterprise Risk management refers to the business practices for that helps in determining,
analyzing all the challenges and issues that can create negative impact on the business
activities. It enables the organization to create strategies for future preparations for upcoming
risks. It is necessary to make strategies to safeguard the organization from upcoming future
events. There are some management practices in every organization that utilize tools and
techniques to analyze different types of risks. This process increases security aspects for
customers at workplace (Harjoto, 2017). There are managerial policies that are mainly
responsible to increase performance. Effective enterprise plays a very important role in
analyzing the risk and creating proper strategies for the same.
Features of risk management
Proper framework- There is different business domains that a business platform deploys. The
effective risk management strategies are formed and implemented due to the risk attached
with each business unit. Enterprise risk platform should be flexible enough and capable of doing
the analysis of current as well as future risk possibility (Schreck, 2009). As per the international
compliances and standards, the enterprise risk policy should comply with the current standards
of the government. This standardization in policies helps in optimum utilization and
consumption of resources. All the policies related to risk management should be ISO 31000:200
certified.