Comprehensive Analysis: Corporate Governance and Risk Assessment

This essay delves into the concepts of corporate governance and risk assessment within organizational contexts. It begins by defining governance as a framework for transparent, inclusive, and responsive public affairs, then narrows its focus to corporate governance, emphasizing its role in ensuring accountability, ethical behavior, and fair stakeholder relationships. The essay highlights key principles of corporate governance, including shareholder and stakeholder recognition, board responsibilities, and business transparency. It then explores risk assessment as a critical process for identifying and managing potential hazards, outlining steps for effective risk management, and differentiating between quantitative and qualitative approaches. The author emphasizes the importance of corporate governance as a vital tool for preventing scandals, mitigating risks, and enhancing a company's public image. The essay concludes by underscoring the central role of corporate governance in fostering sustainable interactions with employees and stakeholders, thereby promoting organizational stability and success.

Running head: CORPORATE GOVERNANCE AND RISK ASSESSMENT
CORPORATE GOVERNANCE AND RISK ASSESSMENT
Name of the Student
Name of the University
Author Note

1CORPORATE GOVERNANCE AND RISK ASSESSMENT
The concept of governance entails the processes and the structures, which are designed to
ensure the transparency, accountability, stability, responsiveness, rule of law, equity and
empowerment, inclusiveness and the broad based participation. The concept of governance is
different to different people. Hence, my focus is to bring out the actual and right meaning of the
term. Again, the term risk assessment refers to the process of looking thoroughly into the
workplace and identifying the things, processes and situations that can cause harm to the people.
The risk assessment also includes the management or the assessment of the identified risk with
the proper measurement.
In the first section, I will discuss my proper understanding of the term ‘governance’. The
term governance represents the values, rules and the norms of the plan through which the public
affairs are controlled and managed in a transparent, inclusive, participatory and the responsive
manner (Gisselquist 2012). Therefore, the concept of governance is subtle, complex, and not
observable. In the broader sense, the governance refers to the institutional and the cultural
environment in which the people and the stakeholders interact with each other in the form of
participating in the public affairs. However, in the essay I will discuss the concept and
understanding of the corporate governance. The corporate governance signifies the method of
governing the organization as a sovereign state, implementing the company’s policies, laws and
customs to the employees in every level (Tricker and Tricker 2015). The corporate governance
intents the increase of the accountability of the organization in order to avoid occurrence of any
disasters in the organization. In other way, the corporate governance denotes the framework of
the practices and the rules with the help of which the board of directors of the organization
ensure the transparent and fair relationship with the employees and the stakeholders (Jo and
Harjoto 2012). The corporate governance of the company is the fundamental and vital process of

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maintaining the healthy relationship within and outside the organization and ensuring the proper
and fair interaction of the corporate entities.
There are some principles in the corporate governance that is necessary to follow for the
fair execution of the corporate governance and its objectives. The principles include the
shareholder recognition, recognition of the stakeholder’s interest, clearance of the board
responsibilities, maintaining the ethical behavior and the business transparency (ArAs 2016). All
the principles are equally important and that the corporate organization needs to maintain the
corporate governance by following these principles.
In this section, I will discuss the concept of the risk assessment in the
organization. As per my understanding of the risk assessment in the corporate organization, the
term depicts the process of managing the risk factors in the organization. The risk or the hazards
in the business of the corporate organization can caused from the various factors. The risk
management involves the responsibility of the organization of the peeper identification of the
risk factors that can cause harm to the organizational operations and the elimination of the same
(Pritchard and PMP 2014). The risk assessment of the organizational operations needs to be
comprehensive and based on the proper measurement for securing the right and appropriate
process to control the risk factors.
The process of risk management requires following few steps for the proper assessment
of the risks factors in the corporate organization. The steps consist identification of the hazards,
determination of the negative influence from the risk factors, evaluation of the risks and the
development of the controlling measurement, finding the records of the previous assessment and

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finally reviewing and updating the risk assessment regularly. These steps are the effective and
the necessary ones to properly assess the hazards and risk factors in the organizations.
Apart from the risk assessment steps in indentifying and managing the hazards in the
corporate workplace, the assessment can be categorized in two sections. In the first category, the
quantitative risk assessment, the management of the organization uses numerical values to find
out the probable impact of the risk factors on the organizational operations (McNeil, Frey and
Embrechts 2015). This kind of risk assessment is used in calculating the revenue measurement of
the organization in the competitive market. The second category of the risk management is the
qualitative risk management. In this assessment the numerical values are not involved in the,
rather the assessment approach lies in measuring the risk (Aloini, Dulmin and Mininno 2012).
This section of the essay discusses the importance of the corporate governance as the risk
assessment tool in an organization. The corporate governance of a company is of predominant
importance as the primary business plan of the organization. The proper execution of the
corporate governance in the organization can manage, prevent and eliminate any corporate
scandals and frauds, criminal and civil liability of the organization (Harris, Kinkela and Shapiro
2013). In addition, corporate governance also enhances the corporate image of the company in
the eyes of the public. It resolves the issues arising in the company from the hazards and the risk
factors. The risk factors like the stakeholders’ engagement, cross-cultural issues in the
workplace, change management and so on can be resolved by the corporate governance.
Moreover, the corporate governance is capable of controlling and managing the entire workflow
system within the organization. In short, the corporate governance is the functional body of the
organization and that the organization must maintain a good and solid corporate governance
system in the workplace.

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Therefore, I can conclude this from the above discourse that the corporate governance is
the fundamental and central functional body of the organization. The corporate governance
signifies the accountability of the organization in terms of maintaining the fair and transparent
relationship with the various and diverse business entities present in the operational business of
the company. I also presented the idea of risk management in the corporate organization through
the proper execution of the corporate governance. Inclusion of the various steps in the corporate
governance as well as in the risk management of the organization leads the company to maintain
the sustainable and proper interaction w the employees and the stakeholders of the organization.

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Reference:
Aloini, D., Dulmin, R. and Mininno, V., 2012. Risk assessment in ERP projects. Information
Systems, 37(3), pp.183-199.
ArAs, G., 2016. A handbook of corporate governance and social responsibility. CRC Press.
Gisselquist, R.M., 2012. Good governance as a concept, and why this matters for development
policy (No. 2012/30). WIDER Working Paper.
Harris, P., Kinkela, K. and Shapiro, S., 2013. RISK ASSESSMENT AND CORPORATE
GOVERNANCE. ISSN 2168-0612 FLASH DRIVE ISSN 1941-9589 ONLINE, p.399.
Jo, H. and Harjoto, M.A., 2012. The causal effect of corporate governance on corporate social
responsibility. Journal of business ethics, 106(1), pp.53-72.
McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts,
techniques and tools. Princeton university press.
Pritchard, C.L. and PMP, P.R., 2014. Risk management: concepts and guidance. CRC Press.
Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices.
Oxford University Press, USA.