Why do companies engage in risk management?

Why do companies engage in risk management?

Risk Management and Internal Control

Essay Title : Why do companies engage in risk management? (2500-3000 words)

As a guide the component parts of the reports will be assessed bearing the following key criteria in mind:

1. Understanding: That is, factual knowledge, logic and conceptual/business understanding.
2. Substantiation: That is commercial relevance of argument backed-up by published academic and other research.
3. Insight: That is, originality, critique and evaluation of points raised.
4. Presentation: That is, clarity, structure, logical flow, executive summary, clear and sensible conclusions/recommendations.

Please stick to the material covered in the lecture/recommended readings as a starting point. This is to avoid you from going off topic.
Also, PLEASE NOTEthat the essay has to be argumentative and insightful. If it is clear to me that a student is just reciting facts and not analytically discussing the topic, the essay will not receive a pass.