naire, and Resolution Insights (Tallio 2014). Diligent will be a growing partner for a broad of directors. Cooperatively, such tools help corporations to attain a fully digitized and governance ecosystem that is integrated to alleviate risk, strategic planning, and governance at the maximum level. The research has been done on the related material available from the code of conduct and corporate governance policies. However, considering the business and the choice of operations the result might vary. The major limitation of the methodology is that it is based upon the review literature proposed by the UK corporate governance. Nothing in the review can be self proposed hence, the entire discussion rests upon the codes that are prescribed. Moreover, the code is not mandatory and optional in nature. 2. Recommendation – reform and policies to be adopted by TelfrodPlc Following are the reforms & policies that the Company should adopt in the company: As studied from the case study, we have seen that the company does not have an internal control department. The company solely depends upon an external auditor's services who have never given a qualified audit report. Here lies a significant gap in the area of governance. The company should form an internal control department which shall constantly work upon building up new controls for the company and reinstating the existing management. The external auditor will also be benefited from the Internal Audit department as it can use their report on their evaluation of control placed and risk assessment within the company (Mouselli, Abdulraouf & Jaafar 2014). The external auditor will comment upon the shortcoming present in the company based on the Internal Audit report and the measures that may adopt a time to overcome them. The company should also form a nomination department responsible for hiring new workforce and managing the Board of directors' succession. This time is significant for a company to timely infuse fresh hiring and manage all the employee-related queries Like Increase in salaries, promotions & transfers etc. The Nomination department will also oversee the employees demand for salary increments. This way, the company can be better managed as the employees are the key drivers of the company growth and development. This department acts as a bridge among the employees and the top management. Due to modern day's hierarchy, the communication gap is becoming a hurdle in the company. This department shall facilitate a dialogue among the various levels of the company. The Board of directors is the ultimate business runners who the shareholders entrust to run the companies for them. The Board of directors should be more transparent in their decision-making, and its well-being should justify it. The shareholder's wealth maximization should be the sole criteria of directors working styles. The modern era of governance has introduced a new responsibility on directors in the form of Corporate Social responsibility, which states that the company should give back benefits, perks and advantages to the society, working environment and the people at large in the form of new job opportunities, better working environment, better carbon emission management, better gender numbers, schools and parks for society (Khan & Rehman 2020). This all has added extra work and responsibility for the directors to be more efficient, transparent, and alert in their working methodology. The Board of directors should build a conducive working environment at their workplace, enhancing the company's productivity. The company should hold frequent meetings and invite newer ideas and creativity from the employees. In times of fierce competition and more recent innovations, the only way to succeed is to understand the market and customer's needs. Customer satisfaction has never been so crucial as it is now. So the Board has to change its strategy to be more aggressive and at the same time more balanced and logical to adapt to new ideas, procedures and policies. The company has to diversify as per modern technologies and changing customer's needs. More and more companies are going for adaption of best practices in their businesses. The businesses are now required to enter into new domains and diversified services. So to keep abreast of the changing times and business needs as mentioned above, The directors have to switch to better and more logical reforms as per the demanding needs of the business. 3. Recommendation Suitable policies to be adopted by the treasury department to lessen the financial exposure to international trade The company Telford PLC is into business with foreign suppliers across the globe. The company imports its supplies from Asia and Africa. The company then sells back those goods back to Asia & Africa also. The cost of importing goods first and then exporting back to Asia & Africa is vast and ultimately reduces the company's profits. Also, the changes in foreign exchange rates play a significant role. Due to falling currency rates, the company import goods at higher rates and may have to export at reduced prices. Following are the safeguards that the company's Treasury department can take for minimization of the financial risk in international Trade. The company should open its branch offices in Asia and Africa so that they can locally procure goods and sell them locally to their local business owners. This way, the company shall not be exposed to international trade and currency fluctuations. The company will be in great position if it opens a office in Asia & Africa so as to tap local markets and the customers very well. In this way, the company can save a lot of money in the form of import & export duties, freight & cartage etc. This will also save a lot of time & efforts for the company and keep the warehouse's cost of storing goods. If the goods are perishable, the cost of their storage goes even higher than the standard goods. The company can take insurance cover for default in payments, that is, bad debts. The company can take insurance cover against any bad debts which occur in the ordinary course of business. Also, the company should take transit insurance for goods both in case of imports and export of goods. Hence even in case of any bad debts or mis happening with the goods in transit, the company will remain safe, and any losses will be covered by the Insurance policy. The insurance cost is not very high but ensures insurance cover in case of any loss in International Trade. Taking Insurance cover for business transactions is a very prudent approach (Crouhy, Galai & Mark 2014). International Trade requires a lot of country-specific compliances like Bill of entry, Invoices, Other papers etc. which are at times incomplete as per Importer countries requirement or specification. In that case, the goods remain at the custom place, which may be a very over crowded or unhygienic place till the time the paper requirements are not fulfilled. To overcome this problem, the company should use the services of Local custom agents to get the goods cleared so that the goods at the customs area are removed at the earliest and reached the customers point. In this case, both the quality of exported goods will remain good, and the party's payment will be made as per the allowed credit period. More the delay more shall be a delay in payment for exported goods. The company should also form an Internal Committee within the company comprising Chairman & directors to assist and comment on the International trade transaction. In the committee, the company should hire experts in the area of international Trade who shall study and comment on the most suitable practices in the area of international transactions so the financial risk can be minimized to the extent possible (Asghar et al 2020). This way, the company can become very professional and can have risk free approach while entering into international trade transactions. Hence using the above approach, the company minimizes the risk involved in International transactions at large. 4. Conclusion In the report, corporate governance and risk management practices in recent years in the UK are explained. There are essential responsibilities that need to be performed by the board for managing the risks within the business. It has been found that from the above report, corporate governance is an integrated part of the company and without the principles of corporate governance it would be difficult to maintain the ethical stand. Corporate governance highlights the responsibility which then sets a clear direction for the individuals and helps the board to guide the company in an ethical manner. Further, risk management becomes easier and implementation of different plan is easier. It is thereby imperative for the board to establish conduits with management proficient in performing these responsibilities. References Arnold, G & Lewis, D. (2019). Corporate Financial Management, 6th Ed., Pearson, London. Asghar, A., Sajjad, S., Shahzad, A., & Bolaji, T. M. (2020). Role of discretionary earning management in corporate governance-value and corporate governance-risk relationships. Corporate Governance, 20(4), 561-581. doi:http://dx.doi.org/10.1108/CG-11-2019-0347 Crouhy, M., Galai, D., Mark, R. (2014). The Essentials of Risk Management. 2nd Edition, McGraw-Hill Education Derenyielo, B., & Joseph, E. M. (2018). Risk management and enterprise risk management in Nigeria: implications for national development and growth. Kuwait Chapter of the Arabian Journal of Business and Management Review, 7(3), 29-40. Khan, J., & Rehman, S. U. (2020). Impact of corporate governance compliance and board attributes on operating liquidity in pre- and post-corporate governance reforms. Corporate Governance, 20(7), 1329-1347. Mouselli, S., Abdulraouf, R., & Jaafar, A. (2014). Corporate governance, accruals quality and stock returns: Evidence from the UK: [1]. Corporate Governance, 14(1), 32. Retrieved from https://www.proquest.com/scholarly-journals/corporate-governance-accruals-quality-stock/docview/1690998870/se-2?accountid=30552 Obembe, O. B., & Soetan, R. O. (2015). Competition, corporate governance and corporate performance. African Journal of Economic and Management Studies, 6(3), 251-271. doi:http://dx.doi.org/10.1108/AJEMS-02-2012-0007 Tallio, V. (2014). Multinational enterprises in Africa: Corporate governance, social responsibility and risk management. Cadernos De Estudos Africanos, (28), 89-92. Retrieved from https://www.proquest.com/scholarly-journals/multinational-enterprises-Africa/docview/1641939168/se-2?accountid=30552 Tao, N. B., & Hutchinson, M. (2013). Corporate governance and risk management: The role of risk management and compensation committees. Journal of Contemporary Accounting & Economics, 9(1), 83.
Subject Name: Finance
Level: Undergraduate
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