The paper shows the ways of disclosing financial risks by IFRS 7 and certain types of sensitivity analysis. The different possibilities of preparing a sensitivity analysis, such as value at risk are illustrated and their suitability for reporting are faced critically. Following, the manner of...

Risk management and oversight have long been recognized as core corporate governance issues and have gained renewed attention in the wake of the financial crisis. Following global trends, recent corporate governance reforms in China also focus on risk oversight and risk management. This article...

This paper provides a systematic literature review on the literature on corporate governance in banks. The review is conducted over academic papers published in the period 1980-2015, identifying 35 years of evolution in the core aspects of banking corporate governance: risk management, ownership...

Prior studies find that entrenched managers destroy firm value by choosing lower risk negative NPV projects. In this paper, I argue that enhanced monitoring by boards and internal controls established following the passage of the Sarbanes-Oxley Act of 2002 and concurrent reforms to stock...

This paper tests the effects of the independence and financial knowledge of directors on risk management and firm value in the gold mining industry. Our original hand-collected database on directors' financial education, accounting background, and financial experience allows us to test the...

Over the past two decades, several corporates collapses and scandals led to track down any deficiencies of the traditional corporate governance mechanisms. These collapses and scandals include Enron (2001) and WorldCom (2002) in USA, Vivendi (2001) and Vinci (2006) in France, Parmalat (2003) in...

Purpose: In most financial institutions, chief risk officers (CROs) and their risk management staff fulfill a role in managing risk exposures, yet their lack of involvement in the governance has been cited as an influential factor that contributed to the financial crisis of 2007-2008. Various...

We hypothesize that CSR serves as a control mechanism to reduce deviations from optimal risk taking, and therefore, CSR curbs excessive risk taking and reduces excessive risk avoidance. Based on the stakeholder theory, firms with CSR focus must balance the interests of multiple stakeholders, and...

Risk is a vital concept to grasp when investing in a firm or project. It is also a key ingredient required to evaluate the cost of capital and perform a valuation. An organization’s capital structure, specifically the amount of leverage and debt financing employed, must be accounted for to...