Reflective Essay: Corporate Governance and Risk Management Analysis

This reflective essay delves into the student's personal experiences and learnings in Corporate Governance and Risk Management. It highlights how good corporate governance enhances organizational productivity and growth while Enterprise Risk Management (ERM) strategies mitigate risks. The essay discusses the practical application of corporate governance principles, such as those recommended by the ASX Corporate Governance Council of Australia, including recognizing and managing risk, encouraging performance, and considering stakeholder interests. The student, drawing from their experience as an Associate Manager in a food manufacturing industry, illustrates how these principles were implemented to address health and safety risks and promote employee motivation. Furthermore, the essay explores the benefits of Corporate Social Responsibility (CSR) activities, such as waste reduction and community awareness campaigns, and the role of ERM in analyzing and minimizing risks. It emphasizes the importance of adhering to corporate governance principles and initiating CSR activities to achieve organizational goals, improve financial performance, and ensure sustainability.

Running head: CORPORATE GOVERNANCE AND RISK MANAGEMENT
Corporate Governance and Risk Management
Name of the Student
Name of the University
Author Note

CORPORATE GOVERNANCE AND RISK MANAGEMENT
Introduction
The main aim of this reflective essay is to shed light on my personal experience and
what I learnt from Corporate Governance and Risk Management. With the implication of
good Corporate Governance, organizations try to increase their productivity and at the same
time promote growth of the organization. Apart from this, through Enterprise Risk
Management Approach, I have learnt strategies to deal with risk in order to reduce it. Apart
from this, the reflective essay will focus on positive aspects of CSR activity and Governance
for effectively managing the workforce.
Discussion
Corporate Governance mainly deals with the set of rules and guidelines through
which majority of the organizations are managed and the knowledge I gained from this is that
by implying the rules of the Corporate Governance organization can achieve its goals and at
the same time would be able to manage their risk (Christensen et al. 2015). Apart from this,
risk management deals with monitoring the risk that an organization already faced or are
likely to face any such risk, and with strategies and tool will try to assess the risk.
Good Corporate Governance System encourages business organization to create value
based structure, implement innovative strategies in order to promote satisfaction to its
stakeholders. According to the ASX Corporate Governance Council of Australia has
implemented ten basic guidelines and principles of Corporate Governance for achieving
better goals (Chan, Watson and Woodliff 2014). I worked as an Associate Manager in one of
the food manufacturing industries in Australia and for achieving the objectives of the
organization I have implemented some of the principals of the Corporate Governance that
includes, “Recognise and manage risk, Encouraging enhanced performance and

CORPORATE GOVERNANCE AND RISK MANAGEMENT
Recognizing the legitimate interests of stakeholders.” By implementing those principals I
had been able to analyze the risk related to health and safety within the organization and with
implementation of effective ideas and innovation tried to minimize those risks (Young and
Thyil 2014). The guidelines proved to be beneficial for my organization, as I had been able to
fulfil the demands of the stakeholders and the shareholders. Apart from this, as per the
principles of encouraging and enhancing performance of the employees, I started to evaluate
performance of the employees and introduced reward policy such as performance based
reward, bonus and more to encourage and motivate the employees. Moreover, corporate
governance tends to be beneficial for every organization if the companies implement the
principles and policies in an appropriate way.
Risk is an inevitable factor and is likely to occur in every organization, therefore in
order to deal with risk Enterprise Risk Management (ERM) proves to be an effective
approach that helps in monitoring the risk and accordingly implement effective tools to
reduce the risk (Lam 2014). For instance, one of my friends works in a construction company
in Australia and their organization analysed risk related to healthy and safety of the
employers within the workplace such as employees faced health risk that resulted to accidents
and injuries of the employees. With the help of Enterprise Risk Management strategy, the
organization was able to monitor the risk and accordingly reduced the risk by introducing
advanced productivity software “PlanGrid” so that employees can work in a safe
environment (Brustbauer 2016). Apart from this, many organizations also apply Lexis Nexis
Entity Insight that is a risk assessment strategy for reducing the risk in order to retain higher
amount of profits and revenues. According to me, Enterprise Risk Management is an
effective risk management approach that tends to analyse all types and the sources of risks
that takes place in organization and tries to provide positive outcomes to the organization.

CORPORATE GOVERNANCE AND RISK MANAGEMENT
Good Corporate Governance on the other hand is an important value based system
that helps in promoting equality and growth within the organization and besides that also
aims to achieve the objectives of the organizations. Apart from this Good Corporate
Governance tries to fulfil the requirements of the employees, shareholders and the customers
and most importantly helps in minimizing the risks (Young and Thyil 2014). However, in my
company with the implications of the corporate governance principles, the company has
received extra profits and thus it invested the wealth in buying modern and effective
technologies for manufacturing better quality food products. Furthermore, with the
implementation of separate feedback and review group by the ASX Corporate Governance, it
encouraged organizations to give their valuable feedback and review regarding the principals.
Whereas, Corporate Social Responsibility (CSR) aims in providing benefits to the
community by taking part in charity shows campaigns and more. Furthermore, it also helps in
mitigating risk of the organization and for this benefits, our organization has initiated CSR
activity by aiming to reduce environmental waste by recycling the waste materials (Grayson
and Hodges 2017). Furthermore, they have also introduced various campaigns to aware the
community regarding the importance of recycling materials.
In order to achieve the goals of the organization, it is important that organization
should be managed and governed in an appropriate way. This would enhance highest
productivity and profit and at the same time will help in the prevention of risk (Barak 2016).
Accordingly to manage and govern my organization, our management and the employees
strictly adhere to the principles of the Corporate Governance and at the same time also
initiated CSR activities. Apart from this, from time-to-time our organization monitor the
amount to risk that can affect the environment and with the implication of Enterprise Risk
Management, the organization tries to minimise it (MacDougal et al. 2015). Furthermore,
organization also manages the day-to-day activities of the organization that includes

CORPORATE GOVERNANCE AND RISK MANAGEMENT
managing workforce, employees’ job performance and more. Apparently, from my personal
experience I learnt by adhering to the rules and policies effectively, companies can reach
their goals and at the same time can generate higher revenues.
Conclusion
The above essay dealt with the importance of Good Corporate Governance and by
implementing those principles, the company can increase its growth. From my personal
learning through Corporate Social Responsibility, if organizations are more involved with
CSR activities then there are better chances for the organization to reach its main target.

CORPORATE GOVERNANCE AND RISK MANAGEMENT
References
Barak, M.E.M., 2016. Managing diversity: Toward a globally inclusive workplace. Sage
Publications.
Brustbauer, J., 2016. Enterprise risk management in SMEs: Towards a structural
model. International Small Business Journal, 34(1), pp.70-85.
Chan, M.C., Watson, J. and Woodliff, D., 2014. Corporate governance quality and CSR
disclosures. Journal of Business Ethics, 125(1), pp.59-73.
Christensen, J., Kent, P., Routledge, J. and Stewart, J., 2015. Do corporate governance
recommendations improve the performance and accountability of small listed
companies?. Accounting & Finance, 55(1), pp.133-164.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Lam, J., 2014. Enterprise risk management: from incentives to controls. John Wiley & Sons.
MacDougall, A.E., Bagdasarov, Z., Johnson, J.F. and Mumford, M.D., 2015. Managing
workplace ethics: An extended conceptualization of ethical sensemaking and the facilitative
role of human resources. In Research in Personnel and Human Resources Management (pp.
121-189). Emerald Group Publishing Limited.
Young, S. and Thyil, V., 2014. Corporate social responsibility and corporate governance:
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