Integration of Good Corporate Governance with Risk Management
DOI:
https://doi.org/10.31258/n1jdyn09Keywords:
Good Corporate Governance, Risk Management, Corporate Governance, Risk Mitigation, Internal OversightAbstract
This study aims to explore the integrative relationship between Good Corporate Governance (GCG) and risk management to enhance governance effectiveness and organizational operational stability. The research focuses on how GCG principles can strengthen the processes of risk identification, measurement, control, and monitoring, thereby fostering a more comprehensive and sustainable risk management system.
A qualitative research method was employed, utilizing an in-depth literature review of scholarly journals, governance guidelines, and international risk management standards. A thematic analysis approach was used to identify conceptual linkages between GCG implementation and the effectiveness of risk management systems.
The results indicate that integrating these two concepts positively impacts transparency, strengthens oversight functions, improves the quality of risk reporting, and facilitates more accurate decision-making processes. The findings also underscore the critical roles played by the board of commissioners, the audit committee, and senior management in ensuring that GCG implementation aligns with risk mitigation efforts. Furthermore, the integration of GCG and risk management is shown to enhance organizational competitiveness through risk management practices that are more proactive and responsive to modern business dynamics.
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