Mengxin Zhao PhD from the University of Pittsburgh has taught at Bentley College and is currently with the University of Alberta. Denise Kleinrichert, PhD, Philosophy, has focused her research and teaching in the areas of business ethics, corporate social responsibility and sustainable business practices. And the recognition of financial agency theory contributes further Directors and Risk Management: Best Practice? Yes No Board Audit Committee Members 90. Kolb, Donald Schwartz Sub Title : Managers of Risk, Sources of Risk Written by : by Robert W. Understand derivatives in a nonmathematical way Financial Derivatives, Third Edition gives readers a broad working knowledge of derivatives. In the first few years of the early twenty-first century a number of unfortunate events have served to give full notice of the risk that board members can impose on the firms they serve.
He recently edited the Encyclopedia of Business, Society, and Ethics 2007. Contents: The relationship between boards of directors and their risk management organizations : are standards of best practice emerging? Lekse and Mengxin Zhao Discussion Tom Nohel 123 125 143 175 192 197 199 217 235 267 Part V Corporate Boards, Risk Management, and the Ethical Firm 273 14 275 15 16 17 The Ethics of Risk Management by a Board of Directors Duane Windsor Assurance and Reassurance: The Role of the Board Barry M. Survey results confirm the anecdotal 10 Michael A. For a discussion and analysis of executive stock options, including the perverse incentives they can generate, see Robert W. Based on a survey of leading firms, Keehner and Koenig assess the extent to which boards are full participants in the risk management process.
In some cases, they have selected an existing committee to assume this responsibility, and others have formed often recently a new committee to oversee the risk function. Keehner Columbia Business School and David R. He is currently an assistant professor at the School of Administrative Studies, York University. Notes on Contributors ix Chunxin Jia received his PhD from Peking University, China. His research interest includes corporate finance, corporate governance, real options and game theory, and mergers and acquisition. Note that this survey did not ask whether there was an ongoing training initiative for risk management employees alone, or whether other broad governance training programs existed. In addition, much of the work of the Center, including this conference, has been made possible through the generosity of the Chicago Mercantile Exchange Trust.
Quarterly meetings are most typical, but more frequent meeting cycles are also used by many of these respondents. Kolb also founded Kolb Publishing, Inc. In our survey, 50 percent of respondents agreed that their risk management is a due diligence process for the board. There is a large amount of variability in the frequency of meetings held by the board committee with responsibility for risk oversight. In the ensuing public uproar, newspapers were full of allegations that Grasso had controlled, misled, and duped his board, and he was asked to resign.
In fact, we found that fewer than half of all respondents report using external consultants to provide them with benchmarking data. Series Title: Responsibility: edited by Robert W. He has worked extensively with corporations and governments to design and execute market and financial risk programs. He has worked extensively with corporations and governments to design and execute market and financial risk programs. For example, Jeffrey Skilling of Enron, Dennis Kozlowski of Tyco, Bernie Ebbers of WorldCom, and John and Timothy Rigas of Adelphia presently languish in prison. Considine Chair of Applied Ethics. What organizational objectives are being pursued through the management of risks? Quarterly, the risk team will focus on one specific risk issue and study it in great detail.
Kolb Donald Schwartz Introduction Robert W. Existing Frameworks: A Bifurcation of Risk Management Choices — Compliance or Value Creation? How frequently does this primary board committee meet to exercise its oversight? His research has been published in Financial Management, the Journal of Finance, the Journal of Risk and Insurance, the Journal of Financial Economics, and the Journal of Futures Markets. He recently edited the Encyclopedia of Business, Society, and Ethics 2007. He serves on the Editorial Boards of the Journal of Risk Management in Financial Institutions and the International Journal of Services Sciences. Corporate charters empower boards with an important role in managing risk, but recent events have also shown that the members of these boards can also be sources of risk. Directors and Risk Management: Best Practice? And, finally, regulatory compliance was identified as a primary driver of risk management organizations by 16 of the 46 respondents to this question; but again, it was generally not to the exclusion of the pursuit of additional objectives of competitive advantage, control or loss avoidance. The minority not choosing one of the three committees above vest the responsibility for risk management oversight in a variety of different board committees.
Prior to coming to Loyola, Donald was a Senior Executive with Chase Manhattan Banking Corporation and two subsidiaries of Cargill Incorporated. Fletcher Bentley University , Mohammad J. Assurance and Reassurance: The Role of the Board Barry M. Discussion Tom Nohel Loyola University Chicago Part V: Corporate Boards, Risk Management, and the Ethical Firm. Do Corporate Boards Care About Sustainability? Are risk policies understood throughout the enterprise? His works have appeared in such journals as Academy of Management Journal, Journal of Applied Psychology, Psychological Bulletin, Management Science, Decision Sciences, Personnel Psychology, Decision Support Systems, Journal of Engineering Technology Management, Journal of High Technology Management Research, and Entrepreneurship Theory and Practice. Beyond the foregoing, it is difficult to discern much consistency in the choices made by these respective companies. She has published eight books and more than 150 articles on ethics, bioethics, political and social philosophy, law, public policy, aesthetics, disability studies, and education.
He is a member of the Society for Business Ethics, and is on the Editorial Board of the Encyclopedia of Business Ethics and Society, published in 2007. He recently edited the Encyclopedia ofBusiness, Society, and Ethics 2007. Much of the board behavior or inactivity that allowed these billions of dollars of losses to occur is starting to come to public notice, but the board conduct at most firms will never garner any spectacular media play or public attention. In turn, this vision has come to dominate discussions of governance, risk and whether or not value is driven by risk management as a practice. Arguments for the Implementation of Risk Management From the point of view of the corporate directors, the promise of isolating and managing risk, and in particular the promise of global enterprise solutions, makes it inevitable that companies should avail themselves of the technology of risk management — and for a whole variety of reasons. Other routes found were through the investment committee 1 , the chief counsel 1 , the audit committee 1 and the executive committee 1.