Corporate Governance

Institutional Shareholder Services (ISS) produced a study in February 2004 that showed a direct relationship between good corporate governance and the strength of a company’s stock. The study highlights the importance to investors of appropriate compliance and corporate governance practices within companies. In light of the rash of corporate accounting scandals, and the collapse of the banking sector in 2008 where key individuals were ignorant of the risks they are handling, this should not come as a great surprise.

Oxford Risk Rating is a means of demonstrating to stakeholders and potential investors that your organisation takes corporate governance and risk management very seriously. Oxford Risk Rating serves as an internal control measure that reduces your organisation’s potential exposure to loss, liability and the detrimental consequences associated with negligent employee behaviour. It has many benefits:

• Creates stakeholder value by reducing the downside risks and maximising the upside risks associated with your organisation’s human capital.
• Serves as a corporate governance internal control measure, and proves to stakeholders that risk management structures are incorporated into the organisation’s personnel management practices.
• Provides verification to stakeholders that employment practices are aligned with the board’s expressed risk appetite.
• Communicates a ‘risk culture’ across the workforce in accordance with organisational policy. 
• Reduces the risk to reputation by selecting only those candidates who ‘fit’ within the organisation’s expressed risk culture.