Corporate Governance in the Credit Crisis: Key Considerations for Investors

Abstract

The credit crisis has focused a great deal of scrutiny - by investors, the media, governments and others - on failures in corporate governance, in particular lax board oversight of risk management and executive compensation practices that encouraged excessive risk-taking. While the primary focus has been on governance deficiencies at banks and other financial institutions, Moody's believes the credit crisis will re-emphasize the importance of good corporate governance for both financial institutions and corporates worldwide.