The paper "Governance and Risk Management Practices" is a wonderful example of a Management Case Study. Corporate governance is the handling of work issues within an organization; this determines the failure or success of a business or corporation. It is ensuring that all staff members are treated equally with the respect they deserve; they do not face unnecessary challenges and so on. This has been a key issue in various corporations within Australia and the rest of the world. It manifested in Fraser's case were several employees were sexually harassed by other staff members creating tension among them, this hugely affects the productivity of an organization (PSAROS, J.
2008). Corporate governance refers largely to the rules, processes, or laws by which businesses are handled, and controlled. The term may refer to interior factors defined by the officers, shareholders, or foundation of a corporation, as well as to exterior forces such as consumer groups, clients, and government policy. A corporation is a legal body or person who has a split legal character from its members. The essential legal rights and focus of the corporation comprise the capability to sue and can be sued, the capacity to hold assets in its own name.
The company enjoys all rights that a person enjoys. This would be to sign contracts, conduct business, and make rules to govern it. This means the rules govern its interior affairs (PSAROS, J. 2008). Well-defined and enforced corporate control provides some makeup that, at least in theory, works for the advantage of everyone concerned by ensuring that the venture adheres to acknowledged ethical principles and best practices as well as to formal laws.
To that end, the corporate has been shaped at the local, national, and universal standards (GIBSON, A., BEAUCHAMP, T. L., FISHER, C. M., & PSAROS, J. 2011). In recently, corporate governance has received amplified attention because of high-status scandals relating to the abuse of corporate authority and, in some cases, suspected illegal activity by corporate officers. An essential part of valuable corporate governance management includes provisions for a public or criminal suit of people who conduct unethical or unlawful acts in the forename of the enterprise. Risk management is the recognition, evaluation, and prioritization of risks.
This enables harmonizing, low-cost use of assets reducing, supervising, and controlling the likelihood of fateful events. Risks may emanate as of insecurity within monetary markets, assignment collapse, unlawful activities, as well as intentional attack from a foe, or actions of unsure or unpredictable nature. Numerous risk supervision measures are created together with the Project managing institution, the countrywide institute of standards and expertise. Their aims differ extensively according to whether the danger management technique is in the perspective of project supervision, safety, manufacturing processes, monetary portfolios or community health and safety (PSAROS, J.
2008). David Jones Pty ltd did not follow proper risk management processes and governance to avoid liability, leading to the filing of the suit against the company. Hereunder is an analysis of the poor governance and risk management practices of the organization. The risk management process includes the following steps and none is reflected in David Jones's pty ltd matter.
Corporate governance 2012, viewed 10 October 2012,
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VALLABHANENI, S. R. (2008). Corporate management, governance, and ethics best practices.