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The Risk Management Duties of the Board of Directors

Hanne Birkmose, Mette Neville & Karsten Engsig Sørensen (eds.), Boards of Directors in European Companies – Reshaping and Harmonising Their Organisation and Duties, Forthcoming

Financial Law Institute Working Paper Series 2013-02

32 Pages Posted: 21 May 2013 Last revised: 24 May 2013

Christoph Van der Elst

Tilburg Law School; Ghent University-Universiteit Gent - Department of Business Law

Date Written: April 22, 2013

Abstract

The board of directors is responsible for an appropriate business risk management environment. The paper studies in a comparative way how legislators and courts fill this duty. We question whether the legislative and regulatory framework will improve the equilibrium between entrepreneurship and risk control. We advocate for a distinct approach for strategic and operational risk management, defining risk appetite and tolerance and sufficient monitoring. We also call for full and detailed reporting and compliance risk management.

Keywords: fiduciary duties, regulatory risk management, compliance, corporate governance, corporate law, court rulings

JEL Classification: G32, K22, G30, M40

Suggested Citation

Van der Elst, Christoph, The Risk Management Duties of the Board of Directors (April 22, 2013). Financial Law Institute Working Paper Series 2013-02. Available at SSRN: https://ssrn.com/abstract=2267502

Christoph Van der Elst (Contact Author)

Tilburg Law School ( email )

Tilburg, 5000 LE
Netherlands

Ghent University-Universiteit Gent - Department of Business Law ( email )

Universiteitstraat 4
Gent, B-9000
Belgium

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