THE STAGES OF THE RISK MANAGEMENT PROCESS IN CORPORATE GOVERNANCE

Abstract

Risk management in case of implementation of internal control systems, respecting the codes and policies of corporate governance, ensuring integrity, sincerity, transparency and accountability in performance conditions. In corporate governance, in any entity, risk management is necessary because both in the company and in the environment in which it operates, there are uncertainties about the nature of threats in achieving objectives, or the nature of opportunities. Any manager must face the problem, on the one hand, of managing threats, because otherwise, failing to achieve his goals would disqualify him, or, on the other hand, of taking advantage of opportunities for the benefit of the organization, proving its efficiency. If uncertainty is an everyday reality, then the reaction to uncertainty must also become a permanent concern. In general, we can say that uncertainty and risk are part of the activity of any entity; but over time, the differences in performance, dynamics or even survival, at the level of entities also come from the way risk is managed. In corporate governance, the implementation of a risk management system contributes or should contribute to improving the performance of the entity, the company, but, in this sense, the company's management is the one that must identify the risks, organize the risk management system and in the same time to monitor their evolution.

Keywords

• risk
• risk management
• corporate governance
• organization
• uncertainties