Corporate Governance and Risk Management
Added on 2020-02-19
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Running head: CORPORATE LAWCorporate LawName of the StudentName of the UniversityAuthor
1CORPORATE LAWTable of ContentsA......................................................................................................................................................2B.......................................................................................................................................................3C.......................................................................................................................................................5D......................................................................................................................................................7Reference.........................................................................................................................................9
2CORPORATE LAWA. The Board of Ardent has alleged for the fatal accident and subsequent crisis the companyhas met with a tragic accident at dream world where a number of patterns have died due to thefailure of one ride and it is criticized against the operator and owner of Ardent Leisure Limited.Now several questions has been asked and identified about the safety management of thecompany because they have been failed to identify and control the risk which cause the accidentin the dream world1. The corporate governance process establishes framework which includes rules,relationships systems and a method which is organized and monitoring by the particularCorporation2. It is the duty of the government that process on the mechanisms which helps thecompany to establishes the elements of corporate governance. Therefore it should be proper anda good Corporation which always helps the promotional investor confidence and it is included onthe ability of ASX3. According to the principal 7 in corporate governance provide the application ofrecognize and managing risk management. It will also help to control the roles and process ofrisk oversight and management and internal corner. The principle 7 defines where that liabilityand obligation of the board has implied on the establishment through the implementation ofannual review of the risk management system4. 1 Hanrahan, P., Ramsay I., Stapledon G., Commercial Applications of Company Law. Oxford 18th edition 20172 Latimer, P, Australian Business Law CC, 2017 Edition.3 Ali, Searat. "Corporate governance and stock liquidity in Australia: A pitch." Journal of Accounting andManagement Information Systems 15.3 (2016): 624-631.4 Hanrahan, P., Ramsay I., Stapledon G., Commercial Applications of Company Law. Oxford 18th edition 2017
3CORPORATE LAWIn addition if any risk or defects has identified due to the failure of internal controlsystem then the corporate governance will make liable the board authority of the company.Therefore it is the duty of the company that they will operate and monitor the unit control andinvestment appraisal which is related to the financial controls of the capital expenditure5. Thecapital expenditure process on the annual budgets appraisal has the due diligences which areimportant sustainability requirements of the company. In the risk management system the risk isincluded with various kinds like liquidity risk, credit risk, cyber risk, operational risk, fraud riskand security risks who are directly make the effort on the authority of board members6. Therefore the quality and integrity of personal set and ethical standard manuals in the riskmanagement process help to deal with the business risk lines and helps to control themanagement system7. Therefore it can be stated that Ardent Leisure Limited is become liable fortheir affiliate risk management system and here only the principal 7 in corporate governance canhelp to control the safety issues which not only help to control the risk management but alsoprovide proper securities to the employees of the company. Now the duties applicable for theArdent Leisure limited who must apply the principle and ethics for controlling the safetymanagement and prevent the race through the application of ethics in the risk oversight andmanagement and internal control8.B.The directors are playing one of the important roles in the boards where in this case studyit has been found that they are also liable for the failure of board. Therefore both the company5 Latimer, P, Australian Business Law CC, 2017 Edition.6 Ali, Searat. "Corporate governance and stock liquidity in Australia: A pitch." Journal of Accounting andManagement Information Systems 15.3 (2016): 624-631.7 Hanrahan, P., Ramsay I., Stapledon G., Commercial Applications of Company Law. Oxford 18th edition 20178 Harris, J. Hargovan, A. Adams, M., Australian Corporate Law LexisNexis Butterworths 5th edition, 2015.
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