Many of Enrons independent directors were affiliated with Essay

Many of Enrons independent directors were affiliated with organizations that benefited directly from Enrons operations. How would you address this clear conflict of interest - Essay Example The directors’ affiliation with organizations that stood to benefit from the operations undertaken by Enron gave them an opportunity to reap benefits from two sides. To address the underlying conflict of interest, the need to mainstream management is vital. Before directors are installed, there it would be essential to evaluate their relations with other organizations. The establishment of direct links between potential directors and other organizations should disqualify their installation. Investors should also undertake independent evaluations and assessments that relate to their preferred companies. In so doing, they can choose to uphold or ignore the recommendations made by auditors, business analysts, business consultants, or stockbrokers (Dharan & Bufkins, 2004). Directors, auditors, business analysts, business consultants, and stockbrokers work to the best interest of both the shareholders and the organizations that award them service contracts. In the process, the realization of conflict of interest is relatively high. While employees, lenders, and investors could independently and personally influence the extent to which organizational conflict of interest is realized, securities and exchange regulators, in a bid to address the organizational conflict of interest, could oversee the activities undertaken by directors, auditors, business analysts, business consultants, and stockbrokers (Healy & Krishna,

Applying Risk Management Consulting Essay Example | Topics and Well Written Essays - 750 words

Applying Risk Management Consulting - Essay Example In general, risks may vary from operational, strategic, financial, networking to marketing and such. Thus risks are inevitable though undesired. The correct definition of â€Å"risk† as such, depends upon the situation pertinent to it. Identifying and understanding risks is the most crucial part in any risk management principle. Once the risk factors are identified, a thorough analysis is undertaken after which appropriate measures are taken to eliminate, control or reduce them. In the given case of Riordan Manufacturing Inc., a virtual organization, the following study discusses the network system of the different branches of the organization at varied geographic locations. The current network topology reveals vulnerabilities in diverse points and is prone to risks that can be eliminated or minimised adopting certain effective security measures. For a large organization like Riordan Manufacturing, security is an overriding concern. In the current scenario, of networking threats and hacking techniques being reinvented and developing every minute, it is crucial for the network administrator of any network, be it small or big , to implement stringent security measures to prevent any damages. Damages may either be in the form of leakage, destruction, manipulation or misuse of data, intrusion into the home network hindering smooth flow of operations thereby eliciting huge financial losses. Considered to be the building block of network protection,risk itself, should be the backbone of the designed safety strategies and the resulting security architecture. â€Å"Risk management† (Commercial Insights Risk Management Insights, 2012). principles are generally evolved considering factors both of internal and external natures. Internal factors may be assets, vulnerabilities or policies while external factors may be threats, legal or business forces.So, in conducting risk analysis, the foremost issue that comes up is, in identifying the threats the system are