Corporate Boards: Managers of Risk, Sources of Risk Book

Notes on Contributors vii

Preface xv

Introduction Robert W. Kolb Donald Schwartz 1

Part I A Factual Basis 7

1 The Relationship Between Boards of Directors and their Risk Management Organizations: Are Standards of Best Practice Emerging? Michael A.M. Keehner David R. Koenig 9

Part II Is Risk Management by Corporate Boards Even Possible? 53

2 Risk Management, Chaos Theory, and the Corporate Board of Directors Michael Potts 55

3 Anti-Social Norms, Risky Behavior Reza Dibadj 70

4 Time-Inconsistent Boards and the Risk of Repeated Misconduct Manuel A. Utset 90

5 Discussion Sridhar Ramamoorti 112

Part III Board Structure and the Management of Risk 123

6 Theories of Governance and Corporate Moral Vulnerability Greg Young Steven H. Barr 125

7 Mitigating the Exposure of Corporate Boards to Risk and Unethical Conflicts Shann Turnbull 143

8 Supervisory Board and Financial Risk-Taking Behaviors in Chinese Listed Companies Zhenyu Wu Yuanshun Li Shujun Ding Chunxin Jia 175

9 Discussion David R. Koenig 192

Part IV Corporate Boards and the Management of Specific Risks 197

10 Entity-Level Controls and the Monitoring Role of Corporate Boards Donna J. Fletcher Mohammad J. Abdolmohammadi Jay C. Thibodeau 199

11 Do Corporate Boards Care About Sustainability? Should They Care? Steven Swidler Claire E. Crutchley 217

12 Executive Risk Taking and Equity Compensation in the M&A Process William J. Lekse Mengxin Zhao 235

13 Discussion Tom Nohel 267

Part V Corporate Boards, Risk Management, and the Ethical Firm 273

14 The Ethics of Risk Management by a Board of Directors Duane Windsor 275

15 Assurance and Reassurance: The Role of the Board Barry M. Mitnick 294

16Risk Disclosure and Transparency: Toward Corporate Collective and Collaborative Informed Consent Denise Kleinrichert Anita Silvers 316

17 Discussion John R. Boatright 341

Index 355