RISK MANAGEMENT IN THE CONTEXT OF CORPORATE GOVERNANCE: DOMESTIC EXPERIENCE

Abstract

Abstract. The purpose of this article is to assess the formal manifestations of taking into account the principles of risk management in the domestic corporate governance system. A low or satisfactory tendency of the domestic corporate sector to assimilate the rules of corporate governance abroad may also indicate in advance the lack of active risk management in domestic companies in the context of corporate governance. The survey participants' awareness of the importance of the "Risk Management" function of the supervisory board regarding the state of corporate governance in Ukraine does not automatically guarantee the implementation of this function in practice. The results of the analysis of the reporting of joint-stock companies, whose shares are included in the calculation of the PFTS index, indicate the absence and/or lack of disclosure of information regarding the relationship between risk management and corporate governance at domestic enterprises. The leading role of corporate management bodies, in particular the supervisory board, in the formation of long-term risk management policy, including and corporate. The domestic corporate sector as a whole is characterized by a satisfactory level of corporate governance, which indicates incomplete compliance with the principles of corporate governance developed by the international community. Domestic practitioners of corporate governance have formed the correct attitude in theory to the role of the supervisory board in risk management. In practice, according to the results of the assessment of joint-stock companies included in the calculation of the PFTS index, in the context of corporate risk management, insufficient attention is paid, and the reports are of a formal nature. Strengthening the relationship between corporate governance and risk management is possible provided that measures and disclosure of information are implemented in the following directions: constant monitoring of the risk management system and disclosure of information regarding risk management; identification of significant risks; determination of the risk profile of corporate bodies; remuneration for risk management in the short and long term; principles of risk management; reporting to the board.