Risk Management by State-Owned Enterprises and their Ownership
Taking risks is a fundamental driving force in business and entrepreneurship. To reap
the full rewards of risk-taking, however, firms need to have in place effective risk
management practices. This publication provides a stocktaking of ways in which SOEs
and those exercising the state’s ownership role address the issue of risk management
from the perspective of corporate governance (“risk governance”), as recommended in
the OECD Guidelines on Corporate Governance of State-Owned Enterprises. The report
looks at this issue from three perspectives: by taking stock, first, of national legal
and regulatory SOE risk management frameworks, and then by taking stock of risk-management
practices at the level of the SOE and then at the level of the state.