Businesses take risks in their value creation processes. Taking these risks result in upward potentials (rewards) and downward dangers (losses) that have to be monitored and mitigated. Risks essential for the firm to remain in business are inherent and inseparable in their operations. Oversight responsibility to ensure that firms to do not engage in excessive risk... Continue Reading →
Corporate Governance – Playing the Risk Management Card
Introduction The Medici Bank (Banco Medici) formed and run by the Medici family of Italy in the 15thcentury until its liquidation in 1494 was highly reputed in Europe. The collapse of this financial institution made it a foremost corporate insolvency case in history. Its failure was largely ascribed to the family’s excessive spending and extravagant... Continue Reading →