Methods of Managing Organisational Risk and Corporate Governance

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What is one of the methods that can be applied to manage risks identified in the risk management process?

Neglect

Abandon

Comply (correct)

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According to the King IV Report, what is one of the important governance outcomes related to corporate governance?

Unlimited growth

Market dominance

Profit maximization

Ethical culture (correct)

Who are considered internal stakeholders of an organization?

Employees (correct)

Customers

Competitors

Creditors

Which party is considered an external stakeholder of an organization?

Government Signup and view all the answers

What problem is created by the separation between the ownership and management of a business?

Principal-agent problem Signup and view all the answers

In the context of corporate governance, what does triple bottom line refer to?

Economic, social, and environmental impacts Signup and view all the answers

What is the primary focus of strategic direction?

Taking stakeholders' objectives into account Signup and view all the answers

What is the responsibility of the governing body in terms of stakeholder relationships?

Managing stakeholder relationships and setting appropriate strategies Signup and view all the answers

Why is effective communication with stakeholders crucial in risk management?

To actively involve stakeholders and communicate risks Signup and view all the answers

What is the role of corporate governance during strategy implementation?

Implementing the business strategy while considering governance principles Signup and view all the answers

How many activities are involved in managing stakeholders alongside an organisation's risk management process?

Three activities Signup and view all the answers

Which guiding document provides governance principles to consider for achieving an organisation's objectives?

King IV Report Signup and view all the answers

What should the governing body ensure about its committees according to the text?

They can execute their assigned duties effectively Signup and view all the answers

In the context of strategy development, what has been the shift in the focus of objectives?

Including sustainability and stakeholder inclusivity Signup and view all the answers

What is interwoven into every aspect of the strategic direction of an organization according to the text?

Inclusivity of all stakeholders' needs Signup and view all the answers

How does the increased focus on corporate governance impact organizations in the modern environment?

It broadens focus to include both internal and external stakeholders' needs Signup and view all the answers

What should be taken into account when an organization sets its objectives?

The needs of all stakeholders Signup and view all the answers

What is the primary goal for an organization during strategy development?

Ensuring responsible corporate citizenship by including sustainability Signup and view all the answers