Corporate governance in the uk Coursework Example | Topics and Well Written Essays - 2000 words

Corporate face in the uk - Coursework ExampleEconomists have pointed out that banking sector stroke in the UK was triggered by a arrange of actions for example, corporate constitution malpractices like above average remuneration package for directors, pretermit of shareholders engagement, increase in transient ownership, absence of risk measurement mechanisms and misrepresentation of pecuniary performance of the firm have contributed importantly to sub-prime mortgage crisis in the USA which was followed by a global financial crisis in 2008. The global financial crisis caused systematic risks for the UK banks which were linked with the USA and other global financial market. Northern Rock bank was the depression victim of banking crisis in the UK, overreliance on wholesale funding and lack of regulatory control were the reasons behind the failure of Northern Rock bank.Industry analysts have pointed out that, the UK banking sector crisis was triggered by iv types of corporate go vernance failures, such as inefficient risk circumspection, above average remuneration for top level executives, lack of shareholder engagement and lack of board qualification. Next section will discuss the contribution of these four issues to the financial crisis in the UK.Managing risk is an essential part of corporate governance policy of banks in the UK. Investors and shareholders solve on the enthronisation strategy on the basis of the level of risk associated with a particular investment decision. Research scholars have proposed recommendations, in the form of Cadbury report, Greenbury report and Turnbul report, in order to address the risk management issues related to corporate governance policy of companies in the UK. Combined code and Basel II agreements were the guiding criteria for banks to organize risk management strategies but these guidelines were not sufficient for them to avoid financial crisis which resulted from sovereign debt crisis. Although