• Home
  • /
  • Topic
  • /
  • Other
  • /
  • Charity
  • /
  • Risk Management Strategies in NGO and Commercial Sector Compared Research Paper
Verified Document

Risk Management Strategies In NGO And Commercial Sector Compared Research Paper

Corporate Governance and Risk Management The charity and commercial sectors offer different notions concerning risk management in the corporate arena. Currently, the charity sector is facing various difficulties including a reduction in the funding amount and the need to adopt the use of the ever-changing technology. Besides, the communication means is dynamic hence creating emptiness in service provision. However, it embraces new ideas and innovation that prepare the corporate field for the future. Risk management is the process of ensuring that the occurrence of various risks or activities does not cause any financial loss to the entity (Merna, and Al-Thani, 2011). This differs to corporate governance, which refers to the identification and clarification of activities and responsibilities undertaken by various individuals in an organization (Brikend, 2014). The commercial sector offers direct and proportional risk management proposals where the corporate management pays some money for it to be covered against the occurrence of a risk. The following study identified the differences between the third and commercial sectors in relation to the risk management protocols and corporate governance.

The difference between the two sectors is significant and cannot be ignored. Mostly, after the occurrence of any insured risk, the commercial sector is faster and efficient at responding. Since an individual paid all the premiums for the risk, he or she is entitled...

In the charity sector, the organization decides whether to compensate the individual or not. In this case, it does not depend on the fact that the risk was genuine or not. However, it is essential to identify that the third or charity sector might be better positioned to handle the needs of the weak and provide services in remote areas in a better way compared to the commercial sector (Krishna, Stuart, and Fitriya, 2013). In order to differentiate the commercial and charity sector in relation to risk management, it is important to identify the goals between the two sectors. In this case, the primary objective of a commercial sector is to make a profit out of the premiums paid by the insured. However, the third sector aims at restoring the financial position of the investor without having to pay any amount of premium. The needs of the societal members are the priority of the charity organization (Tao and Hutchinson, 2013).
The third or charity sector aims at identifying the needs of the people without any form of discrimination. In such cases, the organizations aim at ensuring that all threats posed to the environment are addressed. The organizations' objectives ensure a maximum productive capacity among different groups including the landless and disabled. On the commercial sector, the compensation or view of the risk management process depends on the innocence of the client. In this case, if the client were in the wrong, he…

Sources used in this document:
Bibliography

Brikend A. 2014. Corporate Governance: A Literature Review. Management Research and Practice, 09/2014, Volume 6, Issue 3, p. 53

Brown, I., Steen, A., and Foreman, J. 2009. Risk Management In Corporate Governance: A Review And Proposal. Corporate Governance, ISSN 0964-8410, 2009, Volume 17, Issue 5, pp. 546 -- 558

Dellaportas, S., Langton, J., West, B. 2012. Governance And Accountability In Australian Charitable Organizations. International Journal of Accounting & Information Management, Volume 20, Issue 3, pp. 238 -- 254

Jizi, M.I., et al., 2014. Corporate Governance And Corporate Social Responsibility Disclosure: Evidence From The U.S. Banking Sector. Journal of business ethics, Volume 125, Issue 4, pp. 601 -- 615
Cite this Document:
Copy Bibliography Citation

Related Documents

Managing the Social and Ethics Issues in Organizations
Words: 7661 Length: 25 Document Type: Term Paper

Social & Ethical Issues in Management Brief Background/History of Corporation Epitech is a technology company that creates and develops software for administrative use for other corporations. The company was founded in the year 2009 and has since then grown to become one of the renowned software technology companies in the region. The headquarters of the company is situated in the state of Virginia. The company is best known for its Omega software

Bundy, R. "Changing Role of
Words: 7658 Length: 20 Document Type: Annotated Bibliography

The enablers include the competence of the people, the culture of the corporation, internal development, worker engagement, efficient and effective communication, and innovative learning. Becker, B. & Gerhart, B. (1996). The impact of human resource management on organizational performance: progress and prospects. Academy of Management Journal, 39 (4), pp. 779-801. The research attempts to advance debates on a nascent link between the human resource systems and the strategic impact of human

How to Perform Valuations for Municipalities in South Africa
Words: 64599 Length: 254 Document Type: Dissertation

……South African Municipalities Municipal Revenue Loss Reduction through Improved Municipal Valuation Methodologies:Balance Sheet Enhancement of South African Municipalities to Improve Rates and Taxes Revenue GenerationAbstractThis study examines the property valuation process of Municipalities in South Africa and develops a strategy for strengthening that process in order to more efficiently value properties and ultimately to enhance municipal balance sheets and increase revenue streams. This study proposes an innovative valuation method based

City Diplomacy: The Increasing Role
Words: 18927 Length: 69 Document Type: Research Proposal

The goals at which this process is aimed can concentrate on creating benefits primarily for one party or on creating benefits for both parties.' (van der Pluijm and Melissen, 2007, p.1) Multiple-sided city diplomacy is a "diplomatic process in which more than two parties are involved, representing various cities." (van der Pluijm and Melissen, 2007, p.1) van der Pluijm and Melissen state that associations of municipalities "such as United Cities

United Parcel Service UPS Strategic Alignment Model
Words: 6817 Length: 22 Document Type: Research Paper

United Parcel Service (UPS) Strategic Alignment Model Business Strategy United Parcel Service (UPS) is one of the leading shipment and logistic company admired for its cargo and package delivery services around the globe. The company has remained as one of the top-package delivery service providers because of the diversity of its services to the public. The company has enjoyed high profits because of the good brand image that it has attained in

Testing Hypothesis in Chapter Four
Words: 37819 Length: 8 Document Type: Essay

Management Strategy to Utilize Meta-Analysis Technique for Nuclear Energy and Waste Disposal and Create Social Sustainability This research proposal explores the link between public perceptions of nuclear power, how those perceptions are formed, and what influence those opinions have on energy policy. These issues are important in light of two realities. First, nuclear energy is declining in its share of global energy. Second, nuclear energy offers what might well be

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now