Question

What should corporate risk managers to managing the conflict that can exist between pursuing growth objectives in a complex and rapidly growing market whilst satisfying all regulatory and compliance related obligations?

Answer 1

Corporate risk managers should be managing the conflict between pursuing growth objective in a complex and rapidly growth market and satisfying all regulatory and compliance related obligation by-

A. Structuring the business in an ethical way which will balance the objectives of the business with the regulatory requirements.

B. Management of books of account in an appropriate way which will not be promoting window dressing and income smoothing.

C. Adoption of performance analysis methods on a regular basis in order to manage the deviation between the actual performance with the budgeted requirements which will be helpful in establishment of proper control mechanism in order to achieve the growth of the company while maintaining the regulatory requirement.

D. Synchronisation of goals of individual managers and shareholders with the goals of the organisation so that it will be eliminating out bad practices in order to achieve higher growth and higher profits.

E. Fixation of the responsibilities of the management in order to make them accountable for their performance and they will be responsible for following up with the litigations also.

F. Fulfillment of Corporate social responsibility so that they will be having a advantage while being approved by the legal authorities because the company will be having a very good history in corporate social responsibility in management and they will be able to achieve their growth objectives while fulfillment of Corporate social responsibility.