The paper "Risk Management and Its Importance in Corporate Governance " is a great example of management coursework. Risks entail activities and processes whose occurrence changes the possibility of something happening according to the existing plan hence affecting the realization of the objectives. This means that risks entail all the possible effects of uncertainty in relation to the realization of organizational objectives (Doherty 2010, p. 14). For companies to experience any form of progress in matters related to growth, development and the realization of goals and objectives, it is the responsibility of the management through corporate boards to develop a set of principles.
These principles help to reduce the risks to the company in terms of any possibility of criminal liability, damages of reputation arising from fraud and other corrupt activities. In the context of an organization, therefore, the managers in charge of risk management must always consider the possibility of a risk occurring and apply risk management strategy options to ensure the elimination of the modification of the risk for the benefit of the company (Gong 2013, p. 213). The main objective of this study is to assess the relevance of risk management strategy in terms of improving the reputation and performance of a company in relation to the procurement department.
This will involve a critical analysis is of the risk management strategy developed by Mattel Company. Risk management and its importance in corporate governance Risk management in the context of an organization entails the process of mitigating or minimizing risks. The success of this process is highly dependent on the ability of an organization to understand its mandate and identify the possible risks that may arise in the process of executing is responsibilities in accordance with the governing principles (Doherty 2010, p.
14). Through effective identification and evaluation of the probable risks, an organization has the responsibility of developing a strategy in terms of the resources and the time that will be used in monitoring and minimizing the risks. In most cases risks result from uncertainties in the market especially with regard to demand, supply and the stock market.
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