scholarly journals Analysis of the Due Diligence System of Australian Timber Legality Based on Standards of ISO Risk Management

2021 ◽  
Vol 33 (3) ◽  
pp. 270-280
Author(s):  
Eun-Kyung JANG ◽  
◽  
Mihyun Seol
Keyword(s):  
Risk Management ◽  
Due Diligence

scholarly journals Due diligence: the risky risk management tool in international law

2020 ◽  
Vol 9 (2) ◽  
pp. 121-136
Author(s):  
Anne Peters ◽  
Heike Krieger ◽  
Leonhard Kreuzer
Keyword(s):  
Risk Management ◽  
International Law ◽  
Structural Changes ◽  
Legal Order ◽  
Institutional Capacity ◽  
Management Tool ◽  
Due Diligence ◽  
State Accountability ◽  
International Legal Order ◽  
Bridging Law

As a standard bridging law and other spheres of normativity, due diligence is pervasive across numerous areas of international law. This paper defines the features and functions of due diligence, illustrating how the concept's development reflects structural changes in the international legal order. Concerning their content, due diligence obligations can be separated into two overlapping types: procedural obligations and obligations relating to States' institutional capacity. Thus, due diligence serves to manage risks, compensate for States' freedoms being circumscribed through legalisation, expand State accountability and possibly stabilise the international order through ‘proceduralisation’. However, it is argued that due diligence cannot be characterised as a general principle of international law due to its diverse content in different fields of international law and its dependence on accompanying primary rules. Finally, it is contended that due diligence introduces certain risks, particularly by diluting States' substantive obligations and contributing to the rise of ‘informal’ international law.

scholarly journals The Management of Tax Risks in Mergers and Acquisitions - The Importance of Tax Due Diligence

2021 ◽  
Author(s):  
Arnaldo Marques de Oliveira Neto
Keyword(s):  
Risk Management ◽  
Mergers And Acquisitions ◽  
Merger And Acquisition ◽  
Point Of View ◽  
Exploratory Research ◽  
Due Diligence ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Target Company ◽  
Acquisition Processes

The purpose of this chapter is to demonstrate the importance of tax risk management in mergers and acquisitions processes by conducting an investigative work called due diligence. To achieve this objective, bibliographic and documentary research was used, as part of exploratory research. In topic 1 it is evidenced that the complexity of tax systems around the world has demanded increasing attention from companies to avoid undesirable cash disbursements for payment of infringement notices arising from questioning by tax authorities related to improper procedures of companies when paying taxes. Additionally, it has required them to be diligent in identifying lawful tax planning alternatives to optimize the tax burden on their operations. In topic 2 the responsibility of company administrators in the management of tax risks is exposed. Topic 3 explains the importance of accounting, tax and legal due diligence in merger and acquisition processes. Finally, topic 4 analyzes the main aspects of due diligence in the tax area. In view of all the exposed in this chapter, it will remain clear to readers the importance of the tax due diligence of the target company, as a way to minimize risks in the decision-making process of the managers of the purchasing company that may compromise the success of the merger and acquisition operation, as well as not subjecting them to administrative and judicial suits, for non-compliance with their fiduciary duties of diligence and loyalty in relation to the company of which they are executives. Additionally, the study’s results suggest that companies—in compliance with the guidelines and limits set by the board—choose the appropriate and specific techniques of risk management, especially those related to minimization, immunization, and transferring these risks. The recommendations derive from the need to identify and manage tax risks, from the point of view of good corporate governance practices. This study may serve as a reference to companies in general, when studying, developing, and implementing recommendations for the identification and minimization of tax risks, as well as in the development of a work program that allows them to conduct due diligence work in target companies.

scholarly journals Human Rights Due Diligence as Risk Management: Social Risk Versus Human Rights Risk

2016 ◽  
Vol 2 (2) ◽  
pp. 225-247 ◽  
Author(s):  
Björn FASTERLING
Keyword(s):  
Risk Management ◽  
Human Rights ◽  
Corporate Strategy ◽  
Risk Identification ◽  
Social Risk ◽  
Due Diligence ◽  
Business And Human Rights ◽  
Risk Management Process ◽  
Process Risk ◽  
Human Rights Due Diligence

AbstractThe UN Guiding Principles on Business and Human Rights endorse a risk management perspective of human rights due diligence, which may create ambiguities with regard to the nature of risk and the objectives of risk management. By ‘human rights risk’ we understand a business enterprise’s potential adverse human rights impacts. Human rights risk can be contrasted to an enterprise’s ‘social risk’ which refers to the actual and potential leverage that people or groups of people with a negative perception of corporate activity have on the business enterprise’s value.This article puts forward the argument that due diligence in respect of human rights risk is conceptually incompatible with the management of social risk, because social risk management and human rights due diligence vary at each step of the risk management process (risk identification, risk measurement and assessment, risk reduction measures). To resolve this incompatibility, an effective integration of human rights due diligence processes into corporate risk management systems would require an elevation of human rights respect to a corporate goal that determines corporate strategy.

scholarly journals Risk Sharing, Transfer and Management

ICR Journal ◽  
2013 ◽  
Vol 4 (2) ◽  
pp. 279-294
Author(s):  
Abdul Karim Abdullah
Keyword(s):  
Risk Management ◽  
Risk Sharing ◽  
Global Financial Crisis ◽  
Due Diligence ◽  
Total Risk ◽  
New Paradigm ◽  
Risk Transfer ◽  
The Global Financial Crisis ◽  
The Right ◽  
Number Of Parties

Risk management is a complex discipline with claimed scientific underpinnings. Since 2008 these have been shaken by the global financial crisis, with the result that some of the key paradigmatic assumptions of risk management are now seriously questioned. Major casualties of the crisis have been the views that credit markets are efficient, and that the best way to manage risk is to transfer it to someone else. With these assumptions increasingly in doubt, the current flawed paradigm of risk management is ripe for a rehabilitation that might bring the world’s financial situation more in line with reality. The central question moving forward today is whether the right lessons will be drawn from the recent (2008) experience, and whether enough momentum can be generated to move to a new paradigm, one of risk sharing rather than risk transfer. This article explores the economic and financial dimensions of risk management and risk transfer, and then juxtaposes this review with a step-by-step survey of Islamic Finance’s teachings on the related - and paradigm setting - notion of risk sharing. Risk sharing ensures an efficient allocation of resources and a reduction of waste by providing investors with a powerful incentive - the risk of losses - to exercise due diligence. At the same time, by requiring a greater number of parties to share total risk, risk sharing enhances systemic stability. These constitute compelling reason for utilising risk-sharing contracts in preference to risk transfer modes of risk management.  

Due Diligence and Structural Change in the International Legal Order

2020 ◽  
pp. 351-390
Author(s):  
Heike Krieger ◽  
Anne Peters
Keyword(s):  
Risk Management ◽  
Structural Change ◽  
International Law ◽  
Risk Society ◽  
Due Diligence ◽  
Global Risk ◽  
Legal Context ◽  
International Legal Order ◽  
Legal Subjects ◽  
International Rule

This chapter first analyses the legal functions of due diligence, notably risk-management and securing accountability, defining audits and impact assessments, or operationalising obligations of progressive realisation. The chapter interprets the rise of due diligence as a response to, a manifestation of, and a catalyst for structural change in international law. These changes include proceduralisation, pluralisation of legal subjects, de-constitutionalisation, and more proactive risk management. The chapter traces understandings of due diligence throughout the different areas of international law and across different types of legal persons. It concludes that due diligence has quite diverse meanings and functions depending on the legal context, and can therefore hardly be qualified as an overarching principle of international law. While due diligence shapes the international law of a global risk society and helps to secure accountability, it also menaces to mellow firm obligations and thus bears the risk to undermine the international rule of law.

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