ABSTRACT
Today’s business environment is often perceived as beset with risks and uncertainties with companies exposed to a wide range of internal and external risks. Thus, in this constantly changing business environment it is generally acknowledged that companies face many threats, challenges and uncertainties including (but not limited to) economic, political and social risks. Operating in a volatile and unpredictable business environment requires companies and other organisations to have an effective risk management system and strategies to contend with risks. These challenges may not only affect company performance but also endanger a company’s survival. Therefore, as a part of good governance, firms should develop strategies to respond to such challenges and mitigate or take advantage of their potential impacts and outcomes. In this way they can protect and create wealth for shareholders.
