19 September 2003

Who moved my CEO? The board of directors guide to managing operational risk

Who moved my CEO? The board of directors guide to managing operational risk: "

By Peter Higgins

Operational risk is on shareholders minds. The topics of interest at a recent NACD - Capitol Area chapter event in McLean, VA USA, included the state of the economy, the stock market and our outlook for the remainder of this year. Corporate governance and Sarbanes-Oxley were fuelling the fire for much of the debate on what was going to fix the current sentiment of investors.

The current state of mind is one of optimism and as the speaker Dr. Robert Sweet, the chief economist and managing director of MTB Investment Group admitted, he was a little above the glass being half full. As an economist with a BA, MBA, JD and PhD he was confident that all the numbers were headed the right direction. He only had one caveat. The risk of more corporate malfeasance was something that could change his rosy view of the economy's crystal ball.

Even in the face off huge US government deficits, our greatest threat to achieving a turn around lies in the behaviour and ethics of our US corporate chief executives rather than the next moves by George Bush et al."

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