AE 10: Governance, Business Ethics, Risk Management and Internal Control

Name: Carl Nicholai B. Paler

Date: 08/27/20
August 27, 2020
Activity No.: 1

1. What is Corporate Governance?

-Is an arrangement by companies to assist and promote effective

entrepreneurial and judicious management that can supply a long-term
success of the company. It is the responsibility of the Boards of directors for
the supremacy of their company. While on the other hand, the shareholder’s
role in governance is to retain the directors and the auditors and to please
themselves as well that a suitable governance or supremacy structure are all
in place.

2. What is Business Ethics?

-Is a study of proper business policies, regulations, and practices concerning

hypothetically controversial subjects including corporate governance, insider
trading, bribery, discrimination, corporate social responsibility, and fiduciary
responsibilities. It relates to all factors and aspects of business conduct and is
significant to the conduct of individuals and entire organizations.

3. What is Risk Management?

-It encompasses the identification, analysis, and response to risk factors that
form part of the life of the business, by means of attempting to control, as
much as possible, future outcomes and shortcomings by acting proactively
rather than reactively. The main purpose is to avoid nor reduce the possibility
of a risk occurring and potential impact of the organization in future lapses.
4. What is Internal Control?

-Is an interlocking set of events that are layered onto the normal operating
procedures of an organization, with the set on safeguarding assets,
lessening errors, and guaranteeing that operations are conducted in an
approved manner. Another way of looking at internal control is that these
activities are needed to alleviate the amount and types of risk to which a
firm is subjected. Controls are also useful for consistently producing
reliable financial statements.

5. How are all of these four connected?

-These four factors of business systematic directions helps individuals nor

organizations to have basic means to run a desired business on how to deal
with daily risk and encounters that may take effect of the company that may
help building a wide range of foundation ahead of its competitors.
Theoretically, it aids companies and set of business traders to run thoroughly
over a long specific set of time to ensure the company’s goals and success in
the long run of the business.