MGAD40H3 Chapter 13: Chapter 13 Notes
Document Summary
Strategic risks are managed primarily by communicating effective boundaries both business conduct and strategic and installing good internal control. Chapter 13 managing strategic risk systems. undesirable levels of risk and performance measurement. Boundary systems are designed to communicate risks to be avoided and to remove any ability to rationalize actions that could expose the firm to. Internal control systems are designed to protect assets and to remove the opportunity for inadvertent error or wilful wrongdoing in transaction processing. To ensure employees engage in the right type of activities, managers must first inspire commitment to a clear set of core values (the beliefs that define. Core values provide guidance about responsibilities to customers, employees, local communities, and stockholders. Managers should never delegate the preparation of missions and credos, they should personally reinforce core values and their importance. In small companies, communication of core values can be accomplished informally, but large companies must formalize this process by articulating and.