Risks of Non-Compliance in Corporate Governance

Running head: RISKS OF NON-COMPLIANCE IN CORPORATE GOVERNANCE

Risks of Non-Compliance in Corporate Governance

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Risks of Non-Compliance in Corporate Governance

Corporate governance describes the broad set the rules, processes, or laws in which mandates controls for select businesses. In some cases, it clearly defines the parameters of businesses' operation, regulation, and control. According to Tech Target, "A well-defined and enforced corporate governance provides a structure that, at least in theory, works for the benefit of everyone concerned by ensuring that the enterprise adheres to accepted ethical standards and best practices as well as to formal laws…" As a result, organizations are expected to develop an organizational structure and processes to ensure full compliance with all policies. Non-compliance with the prescribed policies, practices, and processes could create legal and ethical issues. It has the ability to comprise the organization and all its stakeholders.

Michael Oxley , U.S. Senator from Maryland.

Before the signing ceremony of the Sarbanes-Oxley ...

McBride

The ramifications can have short and long term affects on the viability and sustainability of the organization. Similar to McBride, other organizations have faced issues because of the lack of attention they have given to corporate governance. Trident Microsystems, Affiliated Computer Services, and XTL Biopharmaceutical have also experienced incidents of non-compliance of organizational and governmental mandates. This paper will briefly describe the non-compliance issues faced by these organizations and how they addressed them.

Carolyn Ayers: Trident Microsystems, Incorporated - Non-Compliance Risk and Special Litigation, Compensation, Nomination, and Governance Committees.

After the implementation of the Sarbanes-Oxley Act (SOX) of 2002, "corporations are empowering audit committees, adding financial experts to their boards such as CPAs, enhanced financial whistle-blowing capacity, and improved corporate transparency in financial statements and shareholder disclosures. Good corporate governance is a part of good risk management plan. Providing the tone for the organization from the top that...