Risk Management and Corporate Governance in 21st Century Digital Economy

Governance designates all regulations intended for organization and centralization of human societies on a global scale. The management of corporations organizes the efforts of individuals in order to achieve aims and objectives using available resources inventively and efficiently. Risk management is a practice of steadily choosing cost-effective tactics for diminishing the consequence of threat realization to the corporation which cannot be evaded for the reason that there are financial and practical limits, which means the acceptance of some degree of residual risks. Cyberspace strengthens national and global governance. E-business involves the total digitization of value chains and business processes, and serving traditional organizations creates new value and reach up to that time unattained heights of operational and financial excellence. E-technology and e-commerce produce new challenges for both risk management and corporate governance which could be solved by effective utilization of a continuous development of the means of risk management such as information technology, logistics, networks and a constantly improved ERM in order to comply with the new developments. A highly educated personnel controlled by an effective human resources management is a prime means for accomplishment of effective risk management and corporate governance in a 21st century digital economy.