Florin Boghean

Development of Romanian Corporate Governance in Hospitality Industry: Necessity and Favorable Factors

The risk derives from people’s incapacity to foresee the future, and it is acknowledged only when the possible outcomes have a fairly significant degree of uncertainty. Risk cannot be completely eliminated by man when future results are influenced by random factors. However, it lies in its power to reduce the risk to a level that makes it acceptable. Never, in the history of mankind, larger monetary losses have existed. In this case, two external elements influence the process of making economic decisions, with contrasting effects. The first element is an external one and refers to the accuracy of the obtained results, which of course needs to be maximized, because with increasing precision of the results, the probability of an error decreases. The latter factor relates to the timeframe in which economic decision has to be made, which is increasingly transforming into a luxury characteristic afforded by few entities. This scientific approach aims to identify the corporate governance development favorable factors, and it is based on a specific research methodology, consisting of techniques and methods used to achieve the proposed objective. The paper approaches, from an interdisciplinary perspective, the corporate governance efficiency, a relatively new theme compared to other fields, but which presents an ever-increasing interest. The research falls within a positivist scientific endeavor, which is not deprived of some critical and interpretative approaches that aim at explaining different concepts, as well as highlighting the possible solutions for the identified problems.

Risk Management in the Decisional Process

The achievements of individuals have generated an attitude change toward risk, and the passion for gambling and bets has channeled itself toward economic growth, enhancing the life quality and technological progress. The capacity of defining something that will happen in the future and to choose between more than one alternative represents a central principle of today’s society. Managing risk helps us to orient in a large spectrum of decisional processes, ranging from investing capital to making a family, from insurance premiums market to whether wear a seatbelt. Long time ago, means of production, business administration, and communication were simple. Failures were often, but they could be solved without calling on a computer technician, accountant of investment adviser. Presently, the means we use are much more complex and failures can be catastrophic, with a devastating impact. We must constantly be aware of the failures’ probability and errors.