Credit Derivatives and Risk Management: Corporate Governance in the Sarbanes-Oxley World

Journal of Business Law, Vol. 331, 2009

23 Pages Posted: 21 Jul 2009 Last revised: 28 Jun 2013

See all articles by P. M. Vasudev

P. M. Vasudev

University of Ottawa - Common Law Section

Date Written: May 1, 2009

Abstract

Credit derivatives were at the centre of the recent meltdowns in the financial sector. The article analyzes credit derivatives and their risks from the perspective of corporate governance. The present model of governance is based on management by executives, oversight by the board of directors and audit by independent professionals. The article identifies significant gaps in this structure of governance, in particular the level of involvement of the board in performing its function of monitoring business and risk, and the scope of independent audit. The article proposes regulatory prescription of 'minimum board responsibilities' and mandatory risk assessment.

Keywords: Credit derivatives, collateralized debt obligations, credit default swaps, corporate governance, board oversight, risk management, independent audit, securities law, disclosures

JEL Classification: G30, G32, K20, K22, L20, M10

Suggested Citation

Vasudev, P. M., Credit Derivatives and Risk Management: Corporate Governance in the Sarbanes-Oxley World (May 1, 2009). Journal of Business Law, Vol. 331, 2009, Available at SSRN: https://ssrn.com/abstract=1436187

P. M. Vasudev (Contact Author)

University of Ottawa - Common Law Section ( email )

57 Louis Pasteur Street
Ottawa, K1N 6N5
Canada
613-562-5800 (Phone)
613-562-5124 (Fax)

HOME PAGE: http://commonlaw.uottawa.ca/en/people/vasudev-pm

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
168
Abstract Views
1,568
rank
198,400
PlumX Metrics