27 May. 2010 | Comments (0)
- Understand the company’s key drivers of success.
- Assess the risk in the company’s strategy.
- Define the role of the full board and its standing committees with regard to risk oversight.
- Unusual financial results: Sudden downturn or vast improvement in the financial performance
- Management is unable to explain any discrepancies found during financial stress tests
- Rationalization: Disparity from the business model and a disconnect between company strategy and risk
- Question of board member independence
- Company’s results are noticeably different than others in the industry. (i.e. WorldCom, Enron)