CONCEPTUALIZATION OF RISK MANAGEMENT IN THE CORPORATE GOVERNANCE SYSTEM OF MULTINATIONAL ENTERPRISES
DOI:
https://doi.org/10.17721/1728-2292.2022/2-56/66-74Keywords:
risk management, corporate governanceAbstract
The purpose of the article is to summarize and present the fundamental trends of the last decade related to the formation of the role and place of risk management in the system of corporate governance of multinational enterprises (MNEs).
The analysis is based on the latest research by leading international researchers, such as American scientists Warren Bennis, Bert Nanus, Hugh Grove and Lorenzo Patelli, British scientists Mingzhui Wang, Elizabeth Kelan and Kevin Crowley, international organizations Basel Committee on Banking Supervision, Group of Thirty, Institute of international finance and the Organization for Economic Cooperation and Development. The conducted analysis clearly indicates that failures in MNEs risk management over many years led to catastrophic losses in various industries, when such failures, as in the energy sector, led not only to financial, but also to significant environmental consequences. Among the most significant incidents, we can highlight the accidents on the oil platform "Deepwater Horizon" of the British oil and gas company BP in 2010 in the Gulf of Mexico and the Japanese nuclear power plant Fukushima-1 in 2011. Often these failures also contributed to failures in corporate governance, where boards of directors did not fully consider the risks that MNEs were taking and/or imperfect risk management systems.
Thus, the conceptualization of risk management in the system of corporate governance of MNEs becomes an important component of achieving medium and long-term strategic goals of MNEs in conditions of growing macroeconomic and geopolitical uncertainty.
References
Rasshyvalov D., Rushkovskyi M. Risk appetite statement as multinational enterprises' innovative risk management tool / Rasshyvalov D., Rushkovskyi M. // Actual problems of international relations – 2019. – ed. 141. – С. 68.
Risk Management and Corporate Governance. URL: http://dx.doi.org/10.1787/9789264208636-en, ст. 80.
Bennis W., Nanus B. Leaders: Strategies for Taking Charge / Bennis W., Nanus B. // Leaders: Strategies for Taking Charge – 1985. – С. 26.
Governance since the Economic Crisis. URL: www.mckinseyquarterly.com/ Governance_since_the_economic_crisis_McKinsey_Global_Survey_results _2814
Principles for Enhancing Corporate Governance. URL: http://www.bis.org/ publ/bcbs176.pdf
Toward Effective Governance of Financial Institutions. URL: http://www.group30.org/images/PDF/TowardEffGov.pdf
Governance for Strengthened Risk Management. URL: http://www.iif.com/ download.php?id=PTVGcYdhz8I
Switzerland Market Capitalization: SIX Swiss Exchange: Swiss Market Index. URL: https://www.ceicdata.com/en/switzerland/six-swiss-exchange-marketcapitalization/ market-capitalization-six-swiss-exchange-swiss-market-index
SIX Swiss Exchange. URL: https://www.six-group.com/en/productsservices/ the-swiss-stock-exchange.html
Cappelli P. / How Swissair Landed in Trouble/ URL: https://knowledge.wharton.upenn.edu/article/how-swissair-landed-in-trouble/
Swiss Code of Best Practice for Corporate Governance. URL: https://www.economiesuisse.ch/sites/default/files/publications/economiesuisse_ swisscode_e_web_2.pdf
Federal Act on the Amendment of the Swiss Civil Code. URL: https://www.fedlex.admin.ch/eli/cc/27/317_321_377/en
Risk Management and Corporate Governance, Corporate Governance. URL: http://dx.doi.org/10.1787/9789264208636-en
Euronext Statistics. URL: https://live.euronext.com/en/resources/statistics
At the junction of corporate governance & cybersecurity. URL: https://www.eciia.eu/wp-content/uploads/2019/02/FERMA-Perspectives-Cyber-risk-governance-09.10.2018_0.pdf
Wang, M., Kelan, E. The Gender Quota and Female Leadership: Effects of the Norwegian Gender Quota on Board Chairs and CEOs / Wang, M., Kelan, E. // J Bus Ethics 117 – 2013. – С. 451.
More Women Directors Will Improve Risk Management, ABI Says. URL: https://www.bloomberg.com/news/articles/2011-09-27/more-women-directorswill- improve-risk-management-abi-says
Market capitalization of Equinor (EQNR). URL: https://companiesmarketcap.com/equinor/marketcap/
Equinor: Where we are. URL: https://www.equinor.com/where-we-are
Horton case settlement for Statoil. URL: https://www.globenewswire.com/news-release/2006/10/13/1816863/0/en/Horton-case-settlement-for-Statoil.html
Publication of the investigation report on the In Amenas terrorist attack. URL: https://www.equinor.com/news/archive/2013/09/12/12SepIn Amenasreport
Claessens, S., S. Djankov, Lang L. The Separation of Ownership and Control in East Asian Corporations / Claessens, S., S. Djankov, Lang L. // Journal of Financial Economics – 2000. – С. 58.
Temasek Review 2022 Highlights. URL: https://www.temasekreview.com.sg/downloads/Temasek-Review-2022-Highlights.pdf
Grove H., Patelli L. Lehman Brothers and Bear Stearns: risk assessment and corporate governance differences? / Grove H., Patelli L. // Corporate Ownership and Control – 2013. – С. 612.
