Evaluating and Protecting against Risk through a Corporate Risk Officer
Charlotte Litigation Members Jim McLoughlin and John Fagg co-authored an article published in the Second Quarter 2011 edition of Corporate Board Member magazine. The article, entitled “Evaluating and Protecting against Risk through a Corporate Risk Officer,” was featured in the magazine’s Weighing In section.
The article addresses prospects of corporate risks –risks such as financial misconduct, commercial bribery, or failure of safety systems– and proposes the idea of establishing an enterprise risk function led by a chief risk officer rather than a chief executive officer, general counsel or internal audit team.
According to McLoughlin and Fagg, “To protect the corporation against risk and to fulfill their fiduciary responsibility to shareholders, board members should consider requiring management to create an enterprise risk function headed by a chief risk officer.”
The full article can be viewed here.