Risk Management Case Study: Studying The Mega Corporation Board
A person can consider to join a board by looking at his achievement and good potential to run the company. According to this case study, Jack Wright got the invitation to join the Mega Corporation board because of his personal career had flourished over the years. Besides that, the person also must understand their duties, roles and responsibility as a part of becoming the board. In this case, Jack knows his responsibility to represent the director’s explanation about director’s wife purchase stock of the bank without his knowledge. Other example found in this case is Jack and other directors worked hard to make the bank success in the community. Next, the board should be independent and …show more content…
They must know how to manage the risks when it occurs and take an effective way to reduce the risks. They also should know and practice the risk management process to overcome the problem faces and reduce the costs when losses happened. Since not all of the risks can fully avoided, the board must know and understand how to apply the risk management process for their company. Based on this case study, in the trouble situation, it seemed very difficult for Jack to absolutely eliminate the risk though he thought the board formation process of the bank is achieving the goal.
Next, as a part of the board, the person must have good performance and achievement. In this case, Jack Wright has a personal career that had risen over the years in the community. Besides that they must also have to spend a lot of time to represent the company such as in conducting the meeting with the shareholders. It is because they only have two or three times meeting in one year. Based on case study, Jack presented the director’s explanation of the situation where his wife purchased bank’s stock without his knowledge at the meeting of the governance and nominating …show more content…
What are the pros and cons regarding Jack joining the Mega Board? Pros as regard Jack joins the Mega Board.
Firstly, when joining the Mega Board, of course it looks very prestigious. People will give more respect to Jack and admire him on his position. Next, since it is a big and prestigious company Jack will get the source of significant income and can get more experience by having more networking in the business. Besides that, Jack also will face a widest circle of business by joining the Mega Board and can get the opportunity to turn around the way of he manage the business.
Cons as regard Jack joins the Mega Board.
Of course, it is still have its own cons when joining a prestigious and large company. When Jack joins the Mega Board, the first thing that he should face is he need to spend a lot of time for his work. He has to look the business at every aspects such as the prices, kind of stocks, money and it should be perfect without any constraints and shortage. Besides that, Jack also will has a heavy assignment when he needs to downsize of the board and it is not easy to guide the person in the right position and direction. If he is not fulfilling, the assignment will affect his future in the company. He also has a long commitment for the company since it is a big prestigious company and cannot resign at any time because by doing that, it can give bad reputation to him. In addition, by joining the Mega Board, the element of uncertainty about the characters of each person