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But all sorts of corporate risks remain unrecorded in companies' accounts.
A quarter do not even treat cyber risks as significant corporate risks at all.
Equities, by contrast, "are exposed to specific company risks including rising labor costs, rising energy costs, project execution risks, and corporate risks such as poorly advised acquisitive behavior".
Proponents of risk-related governance structures, such as risk committees or Enterprise Risk Management (ERM) programs, assert that risk monitoring adds value by ensuring that corporate risks are managed.
Many of today's big companies are run by former senior military personnel and the language is sanitised and corporate – risks and "opportunities" are "managed", there are "on-the-ground services".
The insurance industry has failed to keep up with changing business needs and some chief executives say that as much as 90% of their corporate risks are currently not insurable, because nobody has come up with the right products.The industry remains strangely old-fashioned.
Similar(49)
To the Editor: The most common, time-tested and effective method to manage corporate risk is to require corporations to carry comprehensive insurance policies.
Nor should big corporate risk-takers.
How Do Independent Directors Affect Corporate Risk-Taking?
The first paper investigates the role of organizational structures aimed at monitoring corporate risk.
It is based on their recent article, "How Do Independent Directors Influence Corporate Risk-Taking?
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com