Risk management in the function of high-quality corporate governance

Corporate governance, as one of the greatest innovations in strategic management, has been recognized as a 'tool' aimed at effective and efficient maintenance and acquisition of competitive advantage in the work of a joint-stock company. Corporate governance is a management instrument that provides a structure that can adequately define objectives and provide all the necessary resources which will lead to achievement of these goals and constant performance measurement. Creating a structure for effective decision-making, companies reduce the risk of adverse effects from the external and internal environment of the organization, they use resources in a more rational way and have easier access to fresh capital. After the events that happened in the global financial system in the period 2007/2008, all organizations render incomparably greater significance to risk and risk management. The objective of this paper is to emphasize the importance of the link between corporate governance and risk management through the example of 'Telekom Srbija' Belgrade as an example of the company that through active risk management has improved processes and strategies as the most important areas of its operation