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Subject 3. Corporate Governance Risks and Benefits PDF Download

Weak corporate governance, unmanaged conflicts of interest, or inadequate stakeholder management can place firms at a competitive disadvantage. From a corporation's perspective, risks of poor governance include:

  • weak control systems or inefficient monitoring tools;
  • ineffective decision making;
  • legal, regulatory, and reputational risks;
  • default and bankruptcy risks.

Benefits of effective governance and stakeholder management include:

  • better operational efficiency and control brought by effective monitoring tools and control mechanisms;
  • better operating and financial performance;
  • lower default risk and cost of debt.

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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
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