How To Manage Enterprise Risk

The development of risk management in foreign advanced financial enterprises can be called "six Trilogy". From the most basic legal compliance, loss control, risk assessment, and then further to risk management, the last two steps are risk / return optimization and integration of strategy and risk.

Most well-known enterprises are still in the first three steps, and many small and medium-sized enterprises are still struggling in the mire of legal compliance.

A responsible person. enterprise The challenge is to ensure that the returns it seeks are supported by the rational management of the risks it faces. The key to this challenge is how to manage the risks they face and how they measure the value they create. Therefore, risk / return optimization for enterprises, if properly operated, can increase long-term value and help build a more prosperous society.

The concept of comprehensive risk management in financial enterprises is committed to the integration of strategy and risk, risk oriented, risk oriented, and actively exploring the development trend of international advanced risk management concepts, building a risk system that matches business development, seeking balance between risks and benefits, and achieving risk management. value Create.

In terms of corporate governance, ACCA supports the principle of "compliance or interpretation", but believes that this needs to be strengthened to prevent the culture of "hooked" in the box. Corporate governance is changing and there is no solution for all companies. For example, large financial institutions and other listed companies are very different. Because the operation of large financial institutions will pose potential risks to other enterprises and the society, it is necessary to have special details for them. legislation 。 The diversification of business institutions makes it difficult to find common rules. But it does not mean that there is no common ground or can learn from each other.

ACCA believes that there are three main purposes for corporate governance:

First, ensure that the board of directors can represent the interests of all shareholders of the company, protect the company's resource safety, and make reasonable arrangements for the use of resources according to the company's requirements and plans.

Second, ensure that company managers can perform their duties and safeguard the legitimate rights and interests of all stakeholders.

Third, ensure that shareholders and other stakeholders can supervise the directors of the company to perform their duties conscientiously and safeguard the interests of the company.

Entrepreneurs should be responsible for ensuring that businesses are regulated. These regulations exist in ways that encourage trust and confidence. When an organization is related to a major public interest, its management should take reasonable measures to release relevant information on its corporate governance practices.

For this reason, ACCA puts forward ten basic principles of corporate governance and risk management applicable to all enterprises and organizations in the world. It aims to call for the correct implementation of corporate governance by various business groups and relevant organizations in the world, especially in the face of financial crisis and economic downturn.