van Daelen, Marijn; van de Ven, Arco --- "Introducing Risk Management" [2010] ELECD 576; in van Daelen, Marijn; Van der Elst, Christoph (eds), "Risk Management and Corporate Governance" (Edward Elgar Publishing, 2010)

Book Title: Risk Management and Corporate Governance

Editor(s): van Daelen, Marijn; Van der Elst, Christoph

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849803953

Section: Chapter 1

Section Title: Introducing Risk Management

Author(s): van Daelen, Marijn; van de Ven, Arco

Number of pages: 6

Extract:

1. Introducing risk management
Marijn van Daelen and Arco van de Ven

1.1 INTRODUCTION

In reaction to the recent financial crisis and the corporate failures and
frauds at the beginning of the millennium, the emphasis of the business
community in corporate governance has shifted towards internal control
and risk management issues. This shift has not only been fuelled by fraud
but also by excessive directors' remunerations, growing internationalisa-
tion, inadequate reporting, failing auditors and ­ especially in recent years
­ the development of complex financial instruments and their associated
risks. Although risk management is not a new feature of businesses and
corporate governance, it is currently high on the corporate agenda. Risk
management discussions were never of this magnitude before, either
among academics, policymakers, lawmakers or practitioners.
This book provides a comprehensive approach in accounting, and busi-
ness, financial and tax law to risk management. These fields are all interre-
lated and describe and require particular behaviour within organizations.
Chapters 2 to 5 provide an elaborate account of the development of risk
management at EU level, within some EU member states and in the USA.
These chapters explore relevant current risk management discussions and
reforms in order to address possible future directions. Chapter 2 deals with
risk management from an accounting perspective and Chapter 3 addresses
risk management from a business law perspective. Chapter 4 analyses risk
management in financial law and Chapter 5 describes risk management in
taxation. Finally, Chapter 6 paints the overall risk management landscape
in order to ...