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Risk and reward

Risk and reward

This report reviews the circumstances leading up to the recent financial crisis.

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It suggests that companies can balance their reward-seeking behaviours with responsibilities to stakeholders and their need to safeguard their own long-term positions. However, in the run up to the financial crisis, some companies failed to give risk management principles sufficient respect or understanding.

Now that the global economy may be climbing out of downturn, it is timely to examine what needs to be done to prevent the recurrence of the problems we have seen in recent years. In this paper, we consider the issue of how companies should approach the management of the many risks they face, with particular emphasis on the crucial issue of reputational risk management.

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Published: 1 Jun 2010