Page 104 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Planning and Managing IT Infrastructure

Notes 2. In order to make corporate governance successful in India there is a need for a
transparent systematic corporate structure, which can define the basic problem areas
of corporate governance.
3. Satyam fiasco is a live example of failure of corporate governance.
4. Corporate Governance can be made effective only by educating entrepreneurs about
its importance and by making them realise how Corporate Governance can help
them in achieving their corporate goals in long run.
5. There is a need for further review of Clause-49 and Voluntary guidelines for
CorporateGovernance-2000 and other present provisions regarding corporate
governance.

Conclusion
Corporate governance practices have become an essential prerequisite for the ability to
acquire and retain financial resources necessary for restructuring long term investment
and sustainable growth. At one end of the spectrum in shareholders are the owners of
business entity as they are risk takers. At the other end the managers and the executive
director of the company who are in control of its day to day affairs. It is the responsibility
of entire BODs for smooth running of the company, corporate disclosure and governance
requirements through relatives low in some companies, we also changing. Awareness of
the development of Accounting Standard, security regulation, globalisation of financial
markets worldwide effect of corporate strategies alliance has lad to some alternative view
of governance process. In India the situation is alarming there is huge gap between De-
jure and De-facto .Thou there are many regulatory provisions in the Indian legislation
still there actual implementation is poor and a debatable issue.

A good structure of corporate governance is that encourage balance relationship among
shareholders Executive Directors and the BOD. The governance mechanism is shaped by
its political, economic and social history and its legal framework.
Questions
1. Give the reasons for corporate failure.
2. How does corporate governance failure in Satyam provide systemic breakdown in
audit and board oversight of the company? Discuss.

Source: http://www.ijmrs.com/Published%20Paper/Volume%2001/Issue%2002/ijms/ijms19/
ijms19.pdf

5.7 Summary

Corporate Governance deals with the manner the providers of finance guarantee
themselves of getting a fair return on their investment.
IT governance determines how the IT function manages demand, delivers value, and
protects against risk.

Risk mitigation is basically a process to bring the level of risk to one that is acceptable and
can be dealt with by an organisation.

An effective risk mitigation strategy involves identifying the nature of risks associated
with each activity and prioritising them; assessing and evaluating the practicability and
effectiveness of the risk mitigating solutions.

98 LOVELY PROFESSIONAL UNIVERSITY