Corporate Governance · glossary
The board's yearly statement of which risks the company will accept and which it will not. The board approves it, and reviews the risk register, at least once a year (Schedule A, item 13). Charter §9.1 · Schedule A, item 13 · Chapter 2
Explained in Chapter 2, Matters Reserved and Delegation, of Corporate Governance.
The machinery items keep the board's own house in order. The risk appetite statement says which risks the company will accept, and the risk register lists the risks it faces. Terms of reference are a committee's written rules. D&O insurance pays a director's legal costs and damages if she is sued for what she did in office.Read Chapter 2, Matters Reserved and Delegation →
Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.Chapter 1 of Corporate Governance and this glossary are free to read; the rest of the edition is in the Library, at €12 a month or €79 for a Year Pass.
Related terms
Where this term lives
This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Corporate Governance → · All terms A–Z →