Risk Management on the Bases of Corporate Governance-A Study in the Jordanian Insurance Sector

Economic collapses, accompanied by financial crisis and the rising number of failures and bankruptcies of many banks and insurance companies, all raised the concern of corporates and regional and international organizations in suggesting the adoption of corporate governance as a solution. Corporate governance is implemented by the stakeholders to supervise and manage risks and to assure that monitoring standards are enough to avoid these risks and minimize their effects, consequently, this will lead to achieve the required goals and raise the corporate value, which makes us wonder, about the nature and components of risk management on the bases of Corporate Governance. This research answered this question by focusing on the duties of these parts (management council, auditing committee, internal and external auditors and the actuarial specialist) in risk management, and testing their role in some of the Jordanian insurance corporates. Results show that there is a full understanding by all parts, but this understanding differs from one part to another, and to support this understanding, it is important to be committed to the principals and rules of the corporate governance, to reform laws associated with the duties of all parts, and hold sustainable training courses about the bases and roles of corporate governance in risk management at all levels.