Oversee Risk Management as Newer and More Complex Risk Emerge in Corporate Sector

Abstract

This research paper revolves around the basic concepts of risk management, corporate governance, and the strategic decisions of the board members of the firm. These three concepts are connected and correlated with each other. The good governance can lead a firm to avoid risk which can damage the firm. By reducing risk, a firm can manage its profit maximization and can maintain a healthy corporate environment. In addition, this paper also discusses the framework of the corporate governance, the problems faced by the board committee in managing risk, and the ways of reducing risk. Corporate governance can avoid the risk by practicing the suggested framework in their organization and can understand their responsibilities.

Keywords: Risk management, Complex Risk, Corporate Sector.

JEL Classification: G32, M10, O16