Market Discipline and EU Corporate Governance Reform in the Banking Sector: Merits, Fallacies, and Cognitive Boundaries

“… this paper argues that recent #eu #regulatory reform to #corporategovernance, as a means to improve #financialstability is a large-scale intellectual fallacy. Absent EU-wide structural reform to control #risktaking in large and complex #financialinstitutions, the stability of the EU #bankingsector will remain compromised. Smaller and less interconnected #banks will both improve bank corporate governance and create a safer and more stable #financialsector.” Lire

Operational Risk and the New Caremark Liability for Boards of Directors

In #corporategovernance, where boards are being held liable for #misconduct based on #operationalrisk. Operational misconduct is a critical source of #director #liability and should be given the same attention as #financial #mismanagement. Operational risk marks a fundamental shift in the way boards monitor the firm. Judicial doctrine is changing the way boards manage operational risk, avoid liability, and protect stakeholders’ lives and the society […]

Toward a Systems Architecture in Corporate Governance

“This architecture will improve board of directors’ decision-making, strengthen compliance and risk management protocols, empower gatekeepers such as lawyers and accountants to better monitor, and enhance the social contract between business and society. “ Lire

Risk Management and the Board of Directors

“… new risks—and the intensification of longstanding risks—are pressure-testing the agility and resilience of corporate strategies, risk management systems and practices.” Lire

Political Risk Management

“In the current business climate, more companies should emphasize and integrate political risk oversight in their ERM programs. Although neglecting political risk may not trigger legal liability from regulators or courts, it can cause significant financial and reputational losses to the company.” Lire