Question 1 Corporate Governance and Risk Management Which o

Question 1 - Corporate Governance and Risk Management Which of the following least explains why the board of directors needs to maintain independence from executive teams, including the chief financial officer, chief risk officer, and the CEO?

Solution

The correct answer is C.

Independence helps avoid the conflict of interest least explains about the fact that directors need to maintain independence from executive. Above all point except helps to exercise the freedom to the directors as they may give opportunities to qulified and skilled people around which can rapidly help n growth of the company. At the same time it is mandatory to have independent directors in many countries and directors may get changed without ruining the functioning of the company.It is vital point that conflict of interest over certain points of independency of directors gives rise to more immense situation which neverthless favouring for the directors of company.