Activity

Write a reflection paper on how our school practice corporate governance in relation to
risk management.

Corporate Governance is a set of rules, practices and processes by which

stakeholders or even the board of directors need to abide or comply with this set of
rules. It is essential where in it can help the company to balance the interests of a
company’s stakeholders, such as shareholders, management, customer, suppliers,
financers, government and the community itself. The big factor of this is that, if we didn’t
abide with the any set of the rules that company is implying to, it may affect the
company’s performance internally and externally, so Corporate Governance is a key to
secure the wealth of the company or organizations.
In related with the Corporate Governance, by applying this with our school on
how they should practice it is that we can apply these elements to secure the prosperity
of the organization. First is the Responsiveness. Good governance requires the
organization to be designed to serve at its best interest to their stakeholders within a
reasonable timeframe. Second is the Transparency. It means that all of the information
that are being cascaded is easily understandable. It should be also freely available to
those who will be affected by government policies and practices, as well as the outcome
resulting from complying it. Third is the Rule of Law. Good governance requires a fair
and legal framework that are enforced by an impartial regulatory body, for the full
protection of stakeholders. Meaning that there is no unfair or unbiased treatment
towards to the stakeholders to avoid misaligned treatment. Fourth is the
Accountability. Accountability is a big role of good governance. Who is accountable for
what should be documented in policy statements. In general, an organization is
accountable to those who will be affected by its decisions or actions as well as the
applicable rules of law. And lastly, Effectiveness and Efficiency. Good governance
means that the processes implemented by the organization to produce favorable results
meet the needs of its stakeholders while making the best use of resources – human,
technological, financial, natural and environmental – at its disposal.
In the end, corporate governance plays a big role for the secured success of the
company by which is to help build an environment of trust, transparency and
accountability necessary for fostering long-term investment, financial stability and
business integrity, thereby supporting stronger growth and more inclusive societies.