Boards of directors and company executives may not be aware of significant risks that could jeopardize the survival of their companies. The concept of risk is elusive and not wholly appreciated by many business leaders. Enterprise Risk Management (ERM) is a key component of every effective corporate governance process. ERM enhances how the board and company executives meet their obligations to the shareholders and other stakeholders. It provides assurance that organizations will achieve their stated objectives.
In this CFO report, The Race to the Headlines - Case for Enterprise Risk Management, Peter Kiilu, an expert in enterprise risk management explores why companies don't learn from others' past risk management failures and what boards of directors and company executives can do to effectively mitigate risk in their companies.
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