Intensive: Expanding Audit Committee Mandates: Culture, Enterprise Risk, and the Board

A variety of recent headline-grabbing incidents have made clear the importance of “tone at the top” within any business enterprise, and the critical role that corporate culture can play in reinforcing (or undermining) efforts to ensure adherence to legal and regulatory mandates. Forward-looking companies are shifting to a proactive approach to cultural risk management with the understanding that corrosive cultures can pose significant challenges, making the organization more vulnerable to a wide range of potential risks. What is the role of the audit committee, and the board as a whole, in assessing an organization’s culture? Where does the board’s role end and management’s begin? How can a director determine if the culture is “right”? How can a board distinguish between a one-off instance of bad behavior and an indicator of a corrupt culture? How is the role of the compliance function evolving, and what kinds of compliance structures are effective in preventing improper or illegal behavior, or—if necessary—detecting it promptly? How can the board enhance the efficacy of those structures? This session will examine the ways that the board can most effectively identify and address cultural risks in the organization.

Location: Classroom Building, Stanford Law School Date: June 24, 2019 Time: 1:45 pm - 2:50 pm Shellye Archambeau Jay Jorgensen Paula Loop Ryan McConnell