Corporate governance and risk management Print E-mail

Corporate governance is the way in which an organisation is governed and controlled in order to achieve its objectives. This concept of corporate governance embodies a number of accepted management tools. One of the most important is risk management.

The Queensland Audit Office defines risk management as follows:

'Risk management, through its processes of identification, analysis, assessment, treatment, monitoring and review, is a tool for developing and maintaining cost effective controls.'

This definition of corporate governance relies heavily on control and oversight, but an organisation needs to be flexible to respond to unexpected changes in its external and internal environments.

Risk management not only provides strategies for treating risks which might impede an organisation in pursuit of its objectives, but also provides the flexibility for the organisation to respond to unexpected risks and take advantage of unexpected opportunities.

Corporate governance is vital if an organisation is to achieve its objectives.

Legislation extract

Local Government (Finance, Plans and Reporting) Regulation 2010 - s97 Requirement to keep record of particular matters

 

 

 
Last Updated on Monday, 05 September 2011 17:16