Download This PaperBoard Duties: Monitoring, Risk Management, and Compliance
Research Handbook on Comparative Corporate Governance (Afra Afsharipour & Martin Gelter eds., Edward Elgar: 2021)
23 Pages Posted: 4 May 2020 Last revised: 31 Mar 2022
Date Written: March 3, 2020
Abstract
This chapter looks at the role of corporate boards in risk oversight, risk management, and compliance through a comparative lens, drawing on examples from international guidance and diverse legal systems, primarily, the United States, the United Kingdom, leading European jurisdictions, and China.
It argues that given the complexity of modern corporations and of the risk environments in which they are situated, fiduciary duties and corporate boards themselves must be understood in relation to the transnational networks of inter-related actors, regulatory regimes, and other institutions that impact how boards carry out their monitoring role.
This chapter outlines the basic mechanisms of risk oversight, risk management, and compliance in various jurisdictions; discusses diverse conceptions of fiduciary duty and their limits; and considers the challenges and complexity of risk oversight and risk management, particularly with respect to emerging risk. It concludes by identifying key sources of corporate risk oversight that inform and complement corporate boards' role.
Keywords: corporate governance, fiduciary duty, comparative, risk management, risk oversight, compliance, corporate board, emerging risk
JEL Classification: K22, K33, M1, M14, M10, M16
Suggested Citation: Suggested Citation
Virginia E. Harper Ho (Contact Author)
City University of Hong Kong (CityU) - School of Law ( email )
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