Corporate governance? Let’s start again
- The spotlight is on corporate governance
- Innefective boards should smarten up
- Bad habits are difficult to shake
There is widespread consensus that corporate governance failures were an important factor in the financial crisis. For example, the OECD has pointed out that corporate governance practises failed to serve their purpose when they were put to the test. Three particular issues have come up consistently in the deluge of reports that have been produced:
Board effectiveness Inadequate risk managementPoorly-designed remuneration policies that have encouraged excessive risk-taking
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