Corporate governance can be described as a system in which a corporation’s work is controlled by numerous stakeholders to balance interests and attain desired outcomes. It guarantees that the company will focus on meeting the demands of numerous actors instead of generating benefits for only one party. In such a way, the failure to establish an effective corporate governance system might introduce numerous risks to its investors. They might provide their support counting for the specific outcome; however, the lack of attention to their interests, which is one of the poor corporate governance system’s signs, results in unsatisfactory outcomes and deprives investors of a chance to acquire the desired return or money.
The failure of a company to establish an effective system of corporate governance represents a major operational risk to the company and its investors. Explain.
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Academic.Tips. (2023) 'The failure of a company to establish an effective system of corporate governance represents a major operational risk to the company and its investors. Explain'. 12 February.
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Academic.Tips. (2023, February 12). The failure of a company to establish an effective system of corporate governance represents a major operational risk to the company and its investors. Explain. https://academic.tips/question/the-failure-of-a-company-to-establish-an-effective-system-of-corporate-governance-represents-a-major-operational-risk-to-the-company-and-its-investors-explain/
References
Academic.Tips. 2023. "The failure of a company to establish an effective system of corporate governance represents a major operational risk to the company and its investors. Explain." February 12, 2023. https://academic.tips/question/the-failure-of-a-company-to-establish-an-effective-system-of-corporate-governance-represents-a-major-operational-risk-to-the-company-and-its-investors-explain/.
1. Academic.Tips. "The failure of a company to establish an effective system of corporate governance represents a major operational risk to the company and its investors. Explain." February 12, 2023. https://academic.tips/question/the-failure-of-a-company-to-establish-an-effective-system-of-corporate-governance-represents-a-major-operational-risk-to-the-company-and-its-investors-explain/.
Bibliography
Academic.Tips. "The failure of a company to establish an effective system of corporate governance represents a major operational risk to the company and its investors. Explain." February 12, 2023. https://academic.tips/question/the-failure-of-a-company-to-establish-an-effective-system-of-corporate-governance-represents-a-major-operational-risk-to-the-company-and-its-investors-explain/.
Work Cited
"The failure of a company to establish an effective system of corporate governance represents a major operational risk to the company and its investors. Explain." Academic.Tips, 12 Feb. 2023, academic.tips/question/the-failure-of-a-company-to-establish-an-effective-system-of-corporate-governance-represents-a-major-operational-risk-to-the-company-and-its-investors-explain/.