Enterprise risk management

Through big companies' ruin and bankruptcy, risk management is not a choice anymore; it is a mandatory and basic part of any business. Enterprise risk management helps companies to maximize profits by managing their risk. I think a big part of risks comes from employees such as a fraud. Section 404 of the Sarbanes-Oxley of 2002 required U.S. trading corporations to have a fraud risk assessment. For example, shareholders want to maximize their shares, so they elect a good CEO. However, the shareholders do not know whether that CEO works for a company or his or her profits. Thus, shareholders want to perform internal auditing often. Under COSO's research enterprise risk management makes companies to become more transparently through internal auditing. Every business has risk, so companies do not have to hide those risks. Disclose their current risks and potential risks to their shareholders, and inform them how to overcome with those. Then, the shareholders will trust more on the company.

http://en.wikipedia.org/wiki/Enterprise_risk_management)