风险管理代考 As the company launched a business simplification program, the Board would like to use a more focused approach with the company’s
Executive Summary 风险管理代考
This report mainly analysis two key issues and recommendations on risk management based on the current version of the Corporate Governance Principles and Recommendations (4th Edition). According to these principles and recommendations, this report introduces whether AGL meet all requirements and relevant actions the company take to disclose its value to stakeholders.
Meanwhile, by applying a more focused and simple style to be suitable with the company’s strategy in the long run, the company does not need additional measurement system and KPIs to consider. The whole management and control system the company adopted would be different from the previous one. This article suggests that AGL should change its performance measurement control system into a simple and straight style and provides new solutions that AGL should adopt to make this change happen. 风险管理代考
Two Key Issues on Risk Management AND two recommendations
The current version of the Corporate Governance Principles and Recommendations (4th Edition) introduces and identifies 8 main principals and recommendations. Also it gives additional recommendations that apply only in certain cases.
Principle 3 requires that companies should instil a culture of acting lawfully, ethically and responsibly. This is important for listed companies. Enterprise culture is an important part for a company. Suitable enterprise culture can help form a good company’s environment. Help improve the moral standards and awareness of employees. And enable them to form a cohesive force actively. Which is vital for the development of an enterprise.
A good corporate culture could help make the enterprise resources allocated reasonably, and increase the competitiveness of the company. Positive corporate culture has a strong attraction (Sackmann, 2006), not only attracts employees, but also cooperative partners such as suppliers, consumers and the public. Good corporate culture plays a great role in stabilizing talents and attracting talents. Corporate culture plays a competitive role. 风险管理代考
A good corporate culture can make the corporate develop in a healthy way, employees work efficiently and effectively.
And attract more talents continuously. The competitiveness of the enterprise is not only reflected in technology, but also reflected in corporate culture.
Principle 7 recommends that companies should identify and manage risk. A listed company should establish a sound risk management framework and regularly review the effectiveness of that framework. Especially recommendation 7.4 states that a listed company ought to introduce its material effects on environment and society to stakeholders.
As it identifies and discloses such risks, the managers could make efforts on managing risks. Protecting environment is not only a matter of public welfare but also it is a kind of social responsibility. It is a global trend that more companies participating in promoting the development of green markets and reducing their harm on environment and effects on climate change. Also, increase the utilization efficiency of energy and resources would help companies to save costs and seize new green market opportunities.
Influential leading enterprises attach importance to environmental protection. Which can promote the change of relevant business ecological chain. The survival and development of enterprises is highly related with society and environment. Responding to the requirements of society is the expression of enterprise rationality. Corporate social responsibility is helpful for companies to to forming a better living environment.
AGL’s Behaviours 风险管理代考
As Principle 3 requires that companies should instil a culture of acting lawfully, ethically and responsibly. AGL did very well in articulate and disclose its values. The company has disclosed their values in their Corporate Governance Statement at very beginning and also on its website. AGL's five core Values are all disclosed on a very clear position on both report and websites. Meanwhile, it disclosed their code of conduct. Whistleblower policy, anti-bribery and corruption policy on its website.
The company's disclosure of these information shows that the company attaches great importance to the role of corporate culture and wants to establish a better corporate culture. These values gives the Board and senior managers a good guide when they make decisions related to operation activities and corporate governance policies. Meanwhile, the management team provides regular trainings to employees. Regular training can help employees better understand the company's corporate culture and the reasons why the company's management makes decisions.
In addition, training can tap the potential of employees. 风险管理代考
Let them increase their working efficiency. The construction of corporate culture is not only to provide training for employees, but also to enable enterprises to better understand the corporate culture of the company. However, enterprises should also listen to employees' ideas. So that some good ideas can better enhance the competitiveness of enterprises. The cultural construction must let the employees participate in the corporate culture, so as to better effectively spread the corporate philosophy and share the value system. Such as the regular communication between the management and the employees. 风险管理代考
As recommendation 7.4 states that a listed company ought to introduce its material effects on environment and society to stakeholders. As it identifies and discloses such risks. The managers could make efforts on managing risks. AGL has disclosed whether they have material exposure to environment and social and how they manage or intent to manage those risks in annual report for FY 2022. They made environment scorecard to make sure their operations are environmentally friendly and reduce greenhouse gas emissions.
They also increased their purchase on environmental rehabilitation assets.
These all shows their strong awareness to take their social and environmental responsibility and disclose relevant information to their stakeholders. They also take actions to protect environment and reduce their harm to natural environment. AGL purchases a large number of environmental restoration assets, which is conducive to balancing resources and interests, balancing long-term interests and short-term interests, researching and developing comprehensive environmental governance. And making people's living environment better and better.
This is also a reflection of AGL's active commitment to corporate social responsibility. AGL purchases a large number of environmental restoration assets. Which is a way to protect the environment. But the remedy is to repair the environment after it has been damaged.
Therefore, we should consider actively developing new production and processing technologies. Innovating traditional environmental protection methods, and eliminating outdated production and processing equipment in a timely manner to achieve technological progress and innovative development. AGL should also set up a special organization for environmental protection management. And the management personnel should preferably be professionals; Environmental protection facilities shall be equipped with special operators for operation management.
Impact of Strategy and Control on the Control System 风险管理代考
The management systems required by different strategic orientations have different designs, and the use methods of management control systems are also different. By applying a more focused and simple style to fit with the company’s overall strategy. The company does not need additional measurement system and KPIs to consider. The strategy and control on this control system design in the company is similar with the ideas of Belief systems. So that senior executives could communicate the company's core values in a way that employees can understand and accept as all measurement are simple and easy to understand.
But because there are no additional measures and KPIs.
The strategy and control on the control system may become weaker and too loose for employees. Because in the diagnostic control systems. There is not sufficient key performance variables to monitor the behaviors and consequences.
The best performance management is to give both employees and management a clear and consistent system to increase productivity. If the control system is too simple, both employees and management lack of feedback. So that management cannot give training to the employees, employees would lose some development opportunities in the long run.
The strategy and control have significant influences on the company’s control system.
According to Simons’ levers of control, internal control is a structured and personnel system detection and balance mechanism to prevent information replication, inaccuracy, inadequacy and other hazards and failures.
Therefore, the strategy and control would affect whether the control system could provide accurate and adequate information about employee’s performance and increase productivity. If the strategy and control is always detailed and consistent. The control system design would be complicated and the output would be accurate and updated.
Suggestion on AGL company 风险管理代考
As the company launched a business simplification program, the Board would like to use a more focused approach with the company’s overall strategy. The performance measurement and control systems should be simple and focus on main objectives that the business would like to achieve. Meanwhile, the performance measurement control system should be simple and straight. Therefore there should not be too much additional measures and KPIs, all measurements should be directly linked with the company’s original objectives.
Once the management setting expectations, the expectations should be realistic, measurable and easy to understand. The Company's management can consider linking performance with compensation. That is, making decisions related to compensation based on the results of performance evaluation.
On the one hand, employees will attach great importance to performance evaluation. On the other hand, because performance is related to salary, the entire performance system will become direct and simple. The company's development is directly linked to the employee's income, so there is no need for too many additional evaluation indicators.
Farrar, J. H. (2008). Corporate governance : theories, principles and practice. Oxford University Press.
Kolk, B. . (2016). Management Control, Motivation and Performance.
Performance management system implementation. (n.d.). Performance Management, 103–120. https://doi.org/10.1002/9781444308747.ch5
Woods, S., & Shootman, A. (2011). Revenue engine: Why revenue performance management is the next frontier of competitive advantage. New Year Publishing, LLC, pp. 23-87. 风险管理代考
Sackmann, Sonja. (2006). Success Factor : Corporate Culture : Developing a Corporate Culture for High Performance and Long Term Competitiveness : Six Best Practices. Gütersloh, Verlag Bertelsmann Stiftung, pp. 65-77.