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Subject 7. Corporate Governance and Stakeholder Management Risks and Benefits
#cg-and-sm-risks-and-benefits #has-images #puerquito-session #reading-puerquito-verde
From a corporation's perspective, risks of poor governance include:
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weak control systems or inefficient monitoring tools;
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ineffective decision making;
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legal, regulatory, and reputational risks;
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default and bankruptcy risks.
Benefits of effective governance and stakeholder management include:
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better operational efficiency and control brought by effective monitoring tools and control mechanisms;
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better operating and financial performance;
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lower default risk and cost of debt.
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