TRENDS IN CORPORATE GOVERNANCE
Risk is a part of everyday life; in both our personal and business lives, we confront and make decisions about risk. The likelihood and consequences of an unwanted outcome from taking a risk will vary with the circumstances and the type of risk. There are many types of risk that will be encountered in business. Some will have a minimal impact and can be managed easily; others may threaten the longevity of a business.
Risk management is all about being aware of what may happen and taking steps to limit the chances of it occurring, or deciding that you accept that something may occur and that you are prepared for the consequences.
Risk Management, Corporate Governance and Globalisation
Globalisation of the capital market is bringing nations together and provides opportunities for organisations to trade on the international arena. Many factors have contributed to the growth of globalisation.
Globalisation has changed the conditions of competition around the world and the way of doing business. Businesses around the world seek to maximise profits for their shareholders and will therefore look for market opportunities wherever they can be exploited. As well as seeking worldwide market opportunities, global businesses are looking for ways to minimise costs and will therefore investigate production opportunities worldwide, they seek to beat trade tariffs by establishing subsidiary companies in overseas markets.
Globalization for less developed countries encourages faster growth, in turn promoting poverty reduction, democratisation and higher labor and environmental standards. It also gives citizens greater individual freedom to express views and experience cultures through such mediums as television and the internet, which encourage understanding around the world.
With regards to cultural benefits globalisation brings the growth and spread of new technologies such as the telephone and internet and is bringing positive cultural changes...