Home | Business News | Browse by Publication | B | Business Insurance

Crises spur push for reform; Corporate scandals turn spotlight on D&O risks.

Publication: Business Insurance
Publication Date: 15-JUL-02 		Format: Online - approximately 1179 words
Delivery: Immediate Online Access
Full Article Title: Crises spur push for reform; Corporate scandals turn spotlight on D&O risks.(directors and officers liability risks)

Article Excerpt
As the stock market continues to reel in response to a series of corporate financial restatements and charges of accounting irregularities, corporate governance issues are getting increased attention from corporate directors, politicians, and directors and officers insurers.

Washington's focus on corporate governance and accounting practices sharpened last week as the Senate took up accounting reform legislation and President Bush delivered a major address on corporate responsibility.

Meanwhile, a recent study shows directors are more concerned about corporate governance issues, and that the perceived liability exposure is keeping many individuals from accepting board positions.

The study by consulting firm McKinsey & Co. suggests that the liability risks directors now perceive could threaten the existing board governance system.

Of 186 directors responding, 55% said they thought the possibility of being held personally liable in their role as director has gotten somewhat higher in the past year, and 27% said they believed the risk has become very much higher. In addition, 25% said they had turned down an offer to serve on a board or had resigned previous directorships...

Read the FULL article now - Try Goliath Business News - FREE!   
You can view this article PLUS...

  • Over 5 million business articles
  • Hundreds of the most trusted magazines, newswires, and journals (see list)
  • Premium business information that is timely and relevant
  • Unlimited Access

Now for a Limited Time, try Goliath Business News - Free for 3 Days!
Tell Me More   Terms and Conditions

Get Goliath Business News for 1 year - Just $99 (Save 65%)
Tell Me More   Terms and Conditions

Already a subscriber? Log in to view full article



More articles from Business Insurance
For The Record.(property and casualty insurance posts loss as industry..., July 15, 2002
Insurers unlikely as source of next accounting scandal., July 15, 2002
Global accounting standard for insurance contracts debated.(Brief Arti..., July 15, 2002
District manager joins BI in Boston.(Brief Article), July 15, 2002
Some still banking on benefits of cross-selling.(banking and insurance..., July 15, 2002

Looking for additional articles?
Search our database of over 3 million articles.

Looking for more in-depth information on this industry?
Search our complete database of Industry & Market reports by text, subject, publication name or publication date.

About Goliath
Whether you're looking for sales prospects, competitive information, company analysis or best practices in managing your organization, Goliath can help you meet your business needs.

Our extensive business information databases empower business professionals with both the breadth and depth of credible, authoritative information they need to support their business goals. Whether it be strategic planning, sales prospecting, company research or defining management best practices - Goliath is your leading source for accurate information.