Stern Stewart Research // Volume 25
Authors: Thomas Berner and Konstantin Wrona
Due to the new regulations and standards for corporate governance, such as the Sarbanes Oxley Act and COSO II, risk management is subject to tightened conditions. Based on current observations, a number of companies continue to struggle with finding the right approach to meeting these regulatory requirements. As was the case in the effort to comply with the Law on Corporate Control and Transparency (KonTraG), companies are at risk to stand in the way of their own best interests by thoughtlessly imposing new regulations.
However, truly effective risk management must take a different approach. The goal is not to check off items in regulatory catalogs, but to optimize the company's overall risk-opportunity profile, which in turn improves corporate value. This must be appropriately reflected in all three cornerstones of entrepreneurial risk management: strategy, processes and organization.
available in German only
