The Magazine of Corporate Responsibility

Tag Archive for ‘Risk’

Pay for Risk-Appropriate Performance

Among the December 2009 proxy rule changes approved by the SEC was a requirement that companies discuss and analyze risks that are reasonably likely to have adverse effect on the company’s reputation and/or sustainability. This means companies must not only identify the risks facing them but also determine the probability and severity if realized and how that relates to the company’s compensation policies and programs.

Survey: Companies Worry More About Reputational Risk

Perhaps not surprisingly, heightened concern over risk to corporate reputation is “noticeably” affecting how senior management and boards are doing business, according to a new survey of corporate executives. The survey found the timeliness and quality of information shared with boards is improving while more time is being spent on risk management by directors and executives.

Adding Value and Values to the MBA

When students return to campus in coming weeks, so will debate about the purpose of management education and the role of ethics. Columnist Gael O’Brien wonders whether current business leaders will support training new leaders in skills and competencies that support new models of business – or will it be simply business as usual?

The Ethical Risk of Business as Usual

Columnist Gael O’Brien wonders what it will take to convince corporate leaders to build into their risk management strategies the capacity to ask crucial questions about ethical liability, as is done with legal liability. Such a step, she says, would be hardly radical and would have the objective of putting ethical conduct on the table as a deliberate outcome.

Survey: Executives Expect More Financial Statement Fraud

A survey of 2,100 business professionals found that more than half (56 percent) think more financial statement fraud will be uncovered this year and in 2011, as compared to the last three years. Financial services was expected by most to be the industry with the greatest percentage increase in financial statement fraud alleged by the SEC during 2010.

RiskMetrics Introduces New Governance Scorekeeping Tool

The new GRId, or Governance Risk Indicators, will score companies against best practices in four areas: board, compensation/remuneration, shareholder rights and audit.

Toyota Recall: Five Critical Lessons

Fixing the problem and ensuring that something like it doesn’t happen again will require an all-out effort by Toyota, from assembly line to the boardroom. Even then, there are no guarantees. Maintaining a good corporate reputation in the 21st century is tricky business indeed.

VIDEO:Morgan Stanley Chair Says Regulation Is #1 Issue

John Mack, Chairman of investment bank Morgan Stanley, says that in the wake of the global financial crisis of 2008-09, the number one issue for the financial industry is regulation. “We need to find some link to bring regulators around the world together, and a more systematized way of communicating and understanding risk,” Mack says. “We need to figure out a way that we have a systemic risk manager and make sure they have the resources to understand, monitor and help regulate our industry.”