Nowadays it is obvious that, the businesses have a wider obligation to perform risk
management not only approaching the financial criteria, but a plethora of other parameters.
The new national legislation enhances this approach. There is still limited insight, into how
the corporations can effectively conceptualize intangible or non-financial risks, in relation to
sustainability. Integrating environmental and social risks are critical to the effective
management of any corporation's actual risks, and to improve resources allocation in a
sustainable manner. This demands a strategic and systematic identification of issues through
non-financial risk management. Our purpose is to identify, how Greek companies currently
evaluate the risks, or are planning to do so, at the near future. In particular, the challenge is
how to define and manage non-financial risk in their operations effectively, in parallel with
the implementation of the new legislative framework. Moreover, the role of audit committee
in this procedure is discussed and whether the existence of a different structure (e.g. risk
officer or risk committee) could be beneficial.
In order to describe and evaluate the current situation in Greece, we conducted interviews
with members of BoD or other executives of Greek companies, using a series of questions
that were previously modified, to gain proper information. Gathering data and accordingly
evaluate them, contributes to the outcome of the study, because it clearly demonstrates the
current situation, derived by the most appropriate source. In order to form the questions in
the most suitable way, a lot of preliminary work was needed: review current academic
literature, evaluate reports of corporations’ studies, gather and discuss articles and
documents.
According to the collection and the evaluations of data gathered, both by literature study and
the answers of the given questioners, the small and medium size business level Greek
companies are currently in an early stages of the induction and evaluation of the different
approach of risk management on non-financial risks, at a corporate governance level.. On the
other hand, large public companies seem to have reached an adequate level of adjustment.
However, it is important to pinpoint that all business have already understand the necessity
of such a procedure and it seems that in a short period of time, large adjustments are to be
conducted in that area.
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