Comprehensive Management and Financial and Extra-Financial Risk Control to Overcome the Business Crisis

European Company Law Volume 11 Issue 2

University of Oslo Faculty of Law Research Paper No. 2014-04

6 Pages Posted: 25 Apr 2014 Last revised: 2 Jul 2014

Date Written: April 24, 2014

Abstract

In the current situation, the economic and social context is optimal for the application of the criteria for an integrated management of financial, environmental, social and governance of organizations. The crisis is an opportunity for a change in the management models, which may contribute a greater efficiency and effectiveness of political strategies and processes in organizations.

Of the multiple factors that have caused the financial crisis in which we are engaged, the lack of analysis, control and assessment of risk associated with financial assets and the lack of transparency in information systems had a remarkable influence on the economy. Taking into account every risk holistically and seeking a sustainable management, this study may provide a solution for a successful model change, incorporating into the risk management process financial and extra-financial variables. The proposed model aims to effectively manage the FESG (Financial, Environmental, Social and Governance) risks and create sustainable value over the long term.

Keywords: Financial, Environmental, Social and Governance Risks, Sustainability, Corporate Social Responsibility, Enterprise Risk Management

Suggested Citation

Fernández Izquierdo, Maria Angeles and Munoz-Torres, Maria Jesus and Ferrero, Idoya, Comprehensive Management and Financial and Extra-Financial Risk Control to Overcome the Business Crisis (April 24, 2014). European Company Law Volume 11 Issue 2, University of Oslo Faculty of Law Research Paper No. 2014-04, Available at SSRN: https://ssrn.com/abstract=2428713

Maria Angeles Fernández Izquierdo

Jaume I University ( email )

Campus del Riu Sec
Department of Accounting and Finance
E-12071 Castello de la Plana
Spain
+34 964 728560 ? 8568 (Phone)
+34 964 758565 (Fax)

Maria Jesus Munoz-Torres

Jaume I University ( email )

Campus del Riu Sec
E-12071 Castello de la Plana, Castellón de la Plana 12071
Spain

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