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Subject 7. Corporate Governance and Stakeholder Management Risks and Benefits PDF Download
From a corporation's perspective, risks of poor governance include:

  • weak control systems or inefficient monitoring tools;
  • ineffective decision making;
  • legal, regulatory, and reputational risks;
  • default and bankruptcy risks.

Benefits of effective governance and stakeholder management include:

  • better operational efficiency and control brought by effective monitoring tools and control mechanisms;
  • better operating and financial performance;
  • lower default risk and cost of debt.

Learning Outcome Statements

h. identify potential risks of poor corporate governance and stakeholder management and identify benefits from effective corporate governance and stakeholder management;

CFA® 2021 Level I Curriculum, , Volume 4, Reading 31

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

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