The consultation report analyses the impact of failures and weaknesses in corporate governance on the financial crisis, including risk management systems and executive salaries.
The OECD addresses the weaknesses in corporate governance that are related to the financial crisis. The consultation report analyses the impact of failures and weaknesses in corporate governance on the financial crisis, including risk management systems and executive salaries.
The report concludes that the financial crises can be to an important extent attributed to failures and weaknesses in corporate governance arrangements which did not safeguard against excessive risk taking.
Accounting and regulatory requirements also proved insufficient in some areas. Finally, remuneration systems have in a number of cases not been closely related to the strategy and risk appetite of the company and its longer term interests.
The importance of qualified board oversight and robust risk management is not limited to financial institutions, the report suggests and calls to re-examine the adequacy of corporate governance principles in key areas.
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