OECD Paper on Corporate Governance and the Financial Crisis

Conclusions and emerging good practices to enhance implementation of the Principles

Article posted on 09 Sep 2010

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Summary: An important conclusion from this paper is that the board's responsibility for defining strategy and risk appetite needs to be extended to establishing and overseeing enterprise-wide risk management systems. The report argues that it is good practice for the risk management function to be able to report directly to the board. The risk management function needs to also consider any risks arising directly from the compensation and incentive systems in place.

Topics: Corporate Governance Risk