Risk Management Portfolio: Legal and Governance Analysis

This report presents a comprehensive analysis of a risk management portfolio, focusing on the Australian legal environment and compliance. It delves into various aspects, including contract law, legal relationships, governance theories, and the management of obligations. The report examines the legal framework, regulations, and potential legal risks, using the Australian Wheat Board case study as a reference. It explores corporate governance principles, stakeholder management, and future-proofing strategies for business expansion. Key concepts such as contract law, agency costs, and employment law are discussed, alongside governance theories like Utilitarian and Stakeholder theories. The report also covers managing legal relationships, including contract essentials and remedies, as well as the implications of the Corporation Act 2001. Furthermore, the report touches upon the importance of insurance and risk management strategies to maintain strong business relationships, providing a holistic overview of legal and governance considerations in risk management.

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Risk Management Portfolio

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Table of Contents
Introduction......................................................................................................................................3
Legal Environment..........................................................................................................................4
Governance......................................................................................................................................6
Managing legal relationship............................................................................................................7
Management of Obligations..........................................................................................................11
Future Proofing..............................................................................................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction
This assessment is demonstrated over the analysis of risk management portfolio in relation to the
case study with relation to the Australian legal compliance. This report is focused on the
development of reflection over the analysis of case base studies as Australian Wheat Board in
order to managing the risk. In context to this, the legal framework and regulations are elaborated
which are applied over the settlement of disputes among the parties. Along with this, the legal
risks are also discussed in reference to the case study. The governance theories, liabilities,
opportunities and threats are also assessed in context to the corporate governance. On the other
hand, managing relationships is also elaborated in relation to the stakeholders of businesses.
Apart from this, the management of obligation is also evaluated with related aspects as tort of
law, negligence, due diligence and breach of contract. Moreover, the future proofing aspect is
also reflected in context of strategic planning for the expansion of business such as new
branches, takeovers, mergers, joint ventures and franchisees.

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Legal Environment
It is identified that there is a significant role of the laws and regulations established by the
government for the businesses as businesses have to comply with the rules and regulations
established by the government. The main reason behind it is that it affects the overall
performance of the company. I have gained knowledge regarding different laws that affects the
relationships of the businesses with its stakeholders such as contract law, agency cost, goods and
services law and employment law. I have learnt that the companies are required to provide equal
employment opportunities to the potential candidates. I have also learnt that the law of contract
states that there is an existence of the agreement between two or more persons that can be
enforceable by the law (McKendrick, 2014). I have also gained information related to the sources
of law such as federal, state and common law. This lecture has also helped in attaining the
information related to the components and elements related to the legal contract such as the
parties entering into the contract should not be minor. Besides this, the contract should be formed
with free consent, person with sound mind. Besides this, there should be an existence of an offer
and agreement. This has also helped me understanding different types of offers that can be made
for entering into a contract in a legal manner (Knapp, Crystal & Prince, 2016).
It is essential for the businesses to enter into a contract that can be enforceable by the law as this
may provide them the opportunity to sue the other party for not fulfilling the agreed terms and
conditions in the court and receive compensation in return. In addition to this, the contract is
valid if the intentions to the parties to contract are to form legal relations. It is also found out that
the contract is considered as legal if it is not influenced by fraud, mistake, misrepresentation,
duress and undue influence. I have get the in-depth understanding of the elements of the contract
law by the relevant legal cases occurred in the past. I have also learnt that the owner of the

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company and the company itself are two separate entities and owners can sue the company in a
legal manner (Adriaanse, 2016). Owners are the representatives of the company. The information
gained from studying the employment law, I have gained the information that employer and
employee owe duties to each other.
I have gained the information that there is a presence of different special kinds of contracts such
as employment contract, agency contract, goods and services contract. All of these contracts are
being made by the businesses in a common manner to carry out the trade activities which results
in the inflow and outflow of the money from the business. Along with this, the implementation
of these contracts in an effective manner helps in the attainment of maximum profits by the
businesses (McKendrick, 2014). Thus, the in-depth understanding of the contract law is also
helpful in carrying out economic transactions in the day to day life.

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Governance
From the review of risk management portfolio, it is identified that the governance is a crucial
aspect in which the processes are undertaken in order to manage the market, network and system
of organizational structure through the norms and laws in the regulatory body. In addition to this,
the governance is managed and controlled by the government, regulatory body with the support
of community. It is also denoted that the corporate governance is value creating for the business
to build the significant relationship with the internal and external stakeholders. It is also learned
that the ethics and principle of ethical practices are also important for developing the corporate
governance with following the duties and obligations with the compliance of rules and policies
(GORTON, 2013). In addition to this, the core ethical values such as honesty, loyalty, integrity,
pursuit of excellence, accountability and responsibility are also identified important for
enhancing the reliability of corporate governance under the Australian corporate governance. In
context to the corporate governance, several theories and the principles are also determined with
the different perspective of theory developer. With relation to this, the theories such as Utilitarian
theory which is concerned to the actions should be taken as what the things are wrong and right.
The principles of utility theory are also elaborated with the support of several authors as
Bentham and Mill.
Apart from this, the theories are also measured as the supportive approach for shaping of these
theories towards corporate governance. In relation to this, I understand the stakeholder theory in
which it is known that the management of organization should include the interest of
stakeholders as shareholders, communities, customers, employees and suppliers so that the

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governance can also be implicit in regulatory manner (Du Plessis et. al, 2018). I also learned the
institutional theory, stewardship theory, entity maximization and sustainability model and these
theories are concerned to the governance scope, policy and practice. I also assess the legal
definition of the corporate governance which consist the protection rules; internal effective
monitoring and it also ensures the significant allocation of resources so that the desired
objectives can be attained in productive manner (Lee, 2018). In reference to the case study of
Australian Wheat Board, the corporate governance is also applicable to as the case is inclined to
the poor governance, weak decision making and mismanagement of priorities while pursuing
with the business operations. I also found the key governance issues such as level of delegation,
reporting regimes, not following the appropriate policies and not handling the complaint of
customers and stakeholders in appropriate manner.
Managing legal relationship
From the analysis of case study and the assessment, it was stated that the management of
relationship is one of the crucial aspect for the business entity and another party to maintain the
long term relationship with its stakeholders. From the evaluation of managing the relationship, I
have learnt the law of contract and the managing contract with its essential characteristics of
agreement between two or more parties (Hay et. al, 2017). Along with this, the contract related
information is also attained with the requirement of offer while engaging into a contract. In
context of the examples of nature of the offer is also acclaimed as Pharmaceutical Society of GB
v Boots Cash Chemist Carlill v Carbolic Smokeball and Harvey v Facey. The nature of
acceptance is also identified as it contains the request for information, counter offer and an effort
to impose the conditions over counter party (Mayorga, 2013). The case related to the acceptance
can be learned as Felthouse v Bindley and Masters v Cameron case. On the other hand, other

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requirements of a valid contract are also assessed so that the legal relationship can be maintained
for long time. In relation to this, it is known about the requirements as intention to create legal
relation and the practical evidences are as Balfour v Balfour and Carlill v Carbolic Smokeball.
Along with this, it is also identified that the consideration is also valuable while coming into an
agreement and it is also determined that the agreement is a formal contract in between the two
parties. In order to carry out the rules and regulations of a contract, agreement also enforces to
the engaged party to come into the contract and act according to the conditions of a contract
(PWC, 2018). I also got the information in relation to the capacity of parties as it is also known
that many parties are limited in concern to the public policy, nature or corporation and the
protection of business for minors, insane and influence under the void contract implication.
I also recognized the terms of capable enforcement as the terms can be implied or expressed and
warranties or conditions. In context to the contract enforcement, the cases have replicated as
Tramways Advertising Pty Ltd v Luna Park (NSW) Ltd, Nordenfelt v Maxim Nordenfelt Guns
and Ammunition and Thornton v Shoe Lane Parking. On the other hand, the legality aspect of
contract is also understood as the enforcement in the contract with Australian Wheat Board
might not be applied if the contract is not performing the characteristics of a legal and valid
contract. As in this case study, it is reviewed that the Coles Commission paid the bribe to Iraqi
government by the Alia, a Jordanian trucking Company. The bribe is not the legal way to protect
or perform the conditions of this contract or agreement in between the UN wheat supply
contractor and foods for oil agreement (Australianbusiness, 2014). Moreover, I also get
introduces with the duress, undue influence and unconscionable conduct which is pertained with
the physical threat, emotional pressure and taking the benefits of relationship with the external
parties.

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I also got familiar with the kind of remedies for managing the contract illegality and non-
performance of contract conditions in whit it is also found out that the common formal court is a
solution and the alternative dispute resolution is also a remedy for resolution of a dispute in
between the two or more parties. I also learn about the system of Australian tribunals Victorian
Civil and Administrative Tribunal and Dispute Settlement Centre Victoria so the contract can be
performed accordingly. In extent to this, I also identified the difference in between the employee
and independent contractor. With reference to the case of American Wheat counsel, it was also
helpful for me to understand the implications of Corporation Act 2001 which obliged the director
of Company to perform the job in faith and best interest of Company (Austrade, 2018). In
relation to the Corporation Act 2001, the applicability of employee and employer are also
demonstrated with the common law and statutory laws in the Australian legal compliance.
In context to this, the risk management portfolio also introduces about the supplying goods and
services under the competition and consumer act. Furthermore, this unit was also supportive
which gave me knowledge about the insurance and its different types as indemnity, life,
property, fire and theft, income replacement and public liability. With this the insurance law
principles are assessed in the cases as Australian Associated Motor Insurers v Ellis and Ellis and
Orb Holdings v Lombard General insurance. In context to managing the relationship in between
the legal portfolio, I also learnt the risk management strategies so the relationship can be
maintained through resolving the conflicts (Capiński and Kopp, 2014). I got familiar with the
strategies such as written contracts, disclaimers, exclusion of liability, dispute resolution process
and the policies, procedures so that the agreement can be settled in between the parties and the
relationship can be improved in satisfactory manner.

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Management of Obligations
In relation to risk management portfolio, I learnt about the managing obligations in the
consideration of contract so that the law can be implied in a contract settlement. In relation to the
assessment, I also found that the tort is an act of civil wrong which might be resulted into the
reason of issue and suffer for losses to the claimant that directly resulted into the legal liability. It
is also learnt that the tort is occurred when all the negligence are considered wrong while all the
acts have been done with the intension. I also found that the civil wrong takes place in the
absence of a legal contract in between the two parties. Along with this, the essentials of tort laws
are also determined as trespass, assault or defamation. In this portfolio, I also learnt about the
foundation of law of tort in the regulatory body (Baker and Filbeck, 2013). In relation to this, the
two types of laws are determined as common law cases and the statute law cases in which most
of actions per se tort covers the boundaries with the local authority by law, defamation act,
assault legislation and trespass to land.
Along with this, I also got familiar with the negligence and it is also understood the limitations of
the negligence in which the loss can be covered as social changes case, participation in
dangerous activities and financial and funding issues. Apart from this, I also knew about the
defamation which is defined as the action of ruining the reputation of other people in the market.
At the same time, Defamation Act 2005 is also revealed in this assessment which embodied to
abolish the distinction, to remove the exemplary damages. In addition to this, the negligence is
also learnt in the management of obligation aspect as negligence is determined as the careless
cause which is about to harming the others by mental, physical and financial aspect. In context to

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this, the salient features are also known as the nature of hazard with the knowledge of defendant
along with the preventive action and vulnerability.
The obvious risk related to the negligence, the cases are as Fallas v Mourlas case. About the
public policy aspect the case is also excursed as Graham Barclay Oysters v Ryan and Sullivan v
Moody. Moreover, I also understand about the breach of the duty by any party and do not want
to perform the act as per the contract but the statutory changes are also applicable to support the
victim behind not performing the task due to the seriousness of injury, obvious risk, common
practices and the rules and the codes. In relation to this, the cases are as Scott v CAL Number 14
t/as Tandara Motor Inn 2009 (McKendrick, 2014). Under the statutory limit of personal injury to
claim for the economic loss, I found that there should be 5% permanent for physical and 10% for
psychiatric injury. On the other hand, I also got familiar with the obligation which is not related
to the tort such as privacy and it is treated under the privacy act 1988 and Information privacy act
2000. I also found that the misleading activities for theft of information is increasing widely so
these types of risk can be managed by training, educating and the implementation of policies to
control and secure the private information. Further, this portfolio is also supportive for me to
provide information about the discrimination so as to Equal Opportunities Act 2010 and Racial
Discrimination Act 2002 is also investigated.

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Future Proofing
In relation to the future portfolio, I found the information related to the different types of risk that
might occur in near future and the performance of company can be distorted. In context to this, I
also determined that the risk might occur in the different types as project risk and the business
risks. I assessed that the project risk might be adverse for the business to carry out the
operational activities of business in the case study as American wheat and coal commission with
reference to the case study. From the case study analysis, I also got familiar with the risks such
as planning issues, project scheduling challenges, quality issue, budget issues and risk related to
the resource for performing the task of company. In addition to this, I also understood the
business related risk such as market risk, strategic risk, revenue, management and financial risk
might occurs in the future operations of business. In context to the strategic risk, the bribe given
company as Coles Commission Company and the Alia which is a Jordan based company (Knapp
et. al, 2016). I also found the strategic risk that might affect the companies in the case of
American wheat board as the impact on the business strategy execution, if the Coles commission
wants to expand the business in diverse market than the happened cases can distort the business
strategy for the market development and the reputation related risk might also occur along with
the issue of compliance or regulations.
I also found out the expansion strategies as new branches, mergers, franchise and the joint
ventures. In addition to this, I also understand the characteristics and the nature of all the
business expansion strategies in another market. In addition to this, the Australian national laws
are also introduced as Patents Act 1990, Copyright Act 1968, Designs Act 2003, and Trade
Marks Act 1995 in which the usefulness of patents copyrights and patents are also introduced in