Description
All organisations must grapple with fundamental issues at the heart of governance: who are our stakeholders? What are their objectives? How can we ensure these objectives are met as effectively as possible? How can we ensure all legitimate stakeholders are treated fairly? Via structured learning activities (video lectures, quizzes, discussion prompts and written assessments) this course will teach you how to address these questions and how a sound governance structure and comprehensive risk management framework can support you and your organisation in achieving its objectives. You will consider contemporary ethical issues and devise practical responses to them, and finally, you’ll discover that your future ‘influencing’ challenge will be to encourage all members of your organisation to understand their role in serving your organisation’s stakeholders.
What you will learn
Risk management framework
Most people wrongly consider risk management to be a purely defensive activity; they think that risk management is all about risk reduction. On the contrary, risk-taking is essential in any organisation. This week you will learn how to create a risk management framework that both creates and protects value, supporting the achievement of your organisation’s objectives. You will also gain insights into common biases that prevent individuals and organisations from managing risk well, as part of the overall suite of influencing capabilities.
Foreign exchange risk
To better understand the risk management process, you will apply it to a particular risk that affects many firms operating in global markets: foreign exchange risk. This week you will focus on risk analysis, to demonstrate how foreign exchange movements might impact on firm resilience through the balance sheet. Analysis leads naturally to visualisation and communication of risk concepts – crucial tools for influencing risk management decisions.
Governance
Corporate Governance is the framework of rules, relationships, systems and processes by which authority and influence are exercised in corporations. Corporate governance also encompasses crucial issues such as accountability of leaders, protection of stakeholder interests, setting of objectives and risk management. This week you will consider the classical Anglo-American governance model for listed firms with its emphasis on shareholder rights. You will compare this with alternative governance models. Finally, you will also consider some contemporary governance challenges such as the ‘curse’ of short-termism and poor design of incentive schemes.
Risk governance and culture
You will continue your application of the risk management process to foreign exchange risk. This week the focus is on the treatment of risk. You will consider a wide range of options, highlighting the capacity of firms to manage risks through operational decisions rather than relying on derivative contracts. You will conclude with frameworks for risk governance, to ensure that risk is managed effectively.
