Business Services Industry
Opportunity for risk managers.(Brief Article)
Business Insurance, August, 2002
At a time when corporate governance is getting a lot of attention, risk managers at publicly held companies are in a tough spot. As we report on page 3, some insurance industry observers think that the Securities and Exchange Commission's new requirement that executives certify their companies' financial results might increase companies' exposure to shareholder lawsuits.
If so, risk managers will have some challenges ahead. But with challenge comes opportunity. Indeed, hundreds of chief executive officers and chief financial officers met the SEC's deadline last Wednesday, and, in the process, several companies were forced to restate previously reported results. Earnings restatements commonly lead to shareholder suits, which can, in turn, trigger claims on...
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