Compliance, risk management and internal controls are the “operational side” of corporate governance. They ensure a company follows laws/policies, identifies risks early, and prevents fraud/misstatements through strong controls and audits (concept).
Common exam asks:
You should be able to:
Compliance means following applicable laws, regulations, standards, and internal policies (concept).
Risk management is the process of identifying, assessing and controlling risks that can affect objectives (concept).
Internal control is a set of policies and procedures designed to provide reasonable assurance that objectives are achieved (concept).
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Business ethics refers to implementing appropriate business policies and practices with regard to arguably controversial subjects. Some issues that come up in a discussion of ethics include corporate governance, insider trading, bribery, discrimination, social responsibility, and fiduciary responsibilities.
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Compliance, risk management and internal controls are the “operational side” of corporate governance. They ensure a company follows laws/policies, identifies risks early, and prevents fraud/misstatements through strong controls and audits (concept).
Common exam asks:
You should be able to:
Compliance means following applicable laws, regulations, standards, and internal policies (concept).
Risk management is the process of identifying, assessing and controlling risks that can affect objectives (concept).
Internal control is a set of policies and procedures designed to provide reasonable assurance that objectives are achieved (concept).
You can write a simple 5-part framework (commonly aligned with COSO idea) (overview):
Common governance documents include:
Key idea: policies convert ethical values into clear rules.
Control activities are “what we do” to reduce risk (concept):
Monitoring ensures controls keep working:
Disclosure/reporting supports transparency:
Identify risk -> Set policy/control -> Execute control -> Monitor/audit -> Fix gaps -> Repeat
From this topic
Differences (concept):
Any three differences are sufficient.
Any three risk types (concept/overview):
Write any three with examples.
Conclusion: Together they strengthen governance and trust (concept).