Corporate Risk Management, 2nd Edition

7

Risk Management at Corporate Level

7.1 INTRODUCTION

There has been very little research carried out as to what risks are assessed at the corporate level, who carries out these risk assessments, and the general functions of the corporate body in relation to risk management.

This chapter briefly outlines the history of the corporation, the powers it has, those involved in decision making within the corporate body, the functions carried out at the corporate level and the risks deemed to affect the corporate body, SBUs and projects.

7.2 DEFINITIONS

French and Saward (1983) define a corporation as:

An association of persons that is itself regarded in law as a separate entity which may be put into legal relationships (such as the owner of a property, a party to a contract, or a party to legal proceedings) and which continues in existence until dissolved in accordance with the law.

The persons who are associated together in a corporation are called ‘corporators’ or ‘members’ of the corporation.

The Dictionary of Management (French and Saward 1983) states:

A corporation is a succession of persons or body of persons authorised by law to act as one person and having rights and liabilities distinct from the individuals forming the corporation. The artificial personality may be created by royal charter, statute, or common law.

The most important type is the registered company formed under the Companies Act. Corporations aggregate are composed of more than one individual, such as ...