Corporate Accountability Abc Learning Case Study
ABC LEARNING CASE STUDY
Table of Contents
Nature and relevance of risk to corporate accountability 3
Importance and implementation of risk analysis and risk management systems. 4 Risk management 4 Risk analysis 6 Risk management framework 7 ABC Learning 8 Risk at ABC 9 ABC’s Financial Statement 10
Comparing and contrasting corporate governance 13 Corporate Governance Theories 13
Usefulness of publicly available information 16
References 18
Nature and relevance of risk to corporate accountability
Corporate accountability and risk, although related, are distinct from one another. Corporate accountability suggests legal compliance, business ethics, sustainable development and corporate citizenship. Risk management essentially involves minimizing potential harms to both shareholders and stakeholders.
The nature of risk management can have many objectives. While reducing or mitigating risk is the most common platform, in the corporate accountability sense, doing good can also been seen as a potential risk to the operations of the business. Subsequently, risk management is very relevant to corporate accountability in context as to how the company is operating.
Blanchard 2003 suggests corporate accountability can be defined as a control system designed to monitor the firm’s operations and the possible conflicts of interests between the different stakeholders.
The board of directors is usually considered as one of the most important mechanisms used to achieve such tasks, especially when it comes to risk management. The main functions of directors are to protect the interests of the shareholders and to guide the firm in business operations, with the objective to maximise the firm’s value or the value of its shares.
Business risk management concerns risk, returns and responsibility (ABI, 2004). Strategic planning is required to understand the nature of each component with respect to risk as they each concern the direction of the
Table of Contents
Nature and relevance of risk to corporate accountability 3
Importance and implementation of risk analysis and risk management systems. 4 Risk management 4 Risk analysis 6 Risk management framework 7 ABC Learning 8 Risk at ABC 9 ABC’s Financial Statement 10
Comparing and contrasting corporate governance 13 Corporate Governance Theories 13
Usefulness of publicly available information 16
References 18
Nature and relevance of risk to corporate accountability
Corporate accountability and risk, although related, are distinct from one another. Corporate accountability suggests legal compliance, business ethics, sustainable development and corporate citizenship. Risk management essentially involves minimizing potential harms to both shareholders and stakeholders.
The nature of risk management can have many objectives. While reducing or mitigating risk is the most common platform, in the corporate accountability sense, doing good can also been seen as a potential risk to the operations of the business. Subsequently, risk management is very relevant to corporate accountability in context as to how the company is operating.
Blanchard 2003 suggests corporate accountability can be defined as a control system designed to monitor the firm’s operations and the possible conflicts of interests between the different stakeholders.
The board of directors is usually considered as one of the most important mechanisms used to achieve such tasks, especially when it comes to risk management. The main functions of directors are to protect the interests of the shareholders and to guide the firm in business operations, with the objective to maximise the firm’s value or the value of its shares.
Business risk management concerns risk, returns and responsibility (ABI, 2004). Strategic planning is required to understand the nature of each component with respect to risk as they each concern the direction of the
References: ABC Learning. Viewed August 2nd 2012 <http://en.wikipedia.org/wiki/ABC_Learning> Abdullah, H, &Valentine B, 2009 McRobert, A 2009, ABC Learning Centres Limited – did the annual reports give enough warning?, JESSA, Journal of Applied Finance. Viewed August 11th, 2012 <http://www.amcrobertandassocs.com.au/otherwriting/JASSA_ABCLearningCentres.pdf.>