Having just returned from the AALS Annual Meeting in New Orleans, I thought I’d pass on one of the papers that caught my attention at the conference: Corporate Governance as Risk Regulation in China: A Comparative View of Risk Oversight, Risk Management, and Accountability. Here is an excerpt of the abstract:
Risk management and oversight have long been recognized as core corporate governance issues and have gained renewed attention in the wake of the financial crisis. Following global trends, recent corporate governance reforms in China also focus on risk oversight and risk management…. This article observes that recent guidelines on enterprise risk management (ERM) and internal controls reflect international corporate governance standards, and that China adopts a broad perspective on risk oversight that extends to both financial and non-financial risks. China’s adoption of international models offers a new opportunity to reexamine long-standing debates on the potential for global corporate governance convergence…. Its conclusions support the literature on the path dependency of corporate governance systems and prior comparative studies of corporate governance in China that find convergence of form but divergence of function.