Which risk involves actions taken against a company's Board of Directors?

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The correct choice highlights the specific legal and governance risk that arises when actions are taken by owners or shareholders against the Board of Directors (BOD). This type of risk often relates to issues such as breaches of fiduciary duty, failure to act in the best interest of the company, or mismanagement.

When shareholders or owners take action against the BOD, it typically involves legal claims or disputes arising from dissatisfaction with the board’s conduct, decisions made, or overall corporate governance. Such actions could include lawsuits seeking damages or calling for a board recall or changes in management. This creates potential legal liabilities and can have implications for the organization's reputation and operational effectiveness.

On the other hand, the other options pertain to different types of risks that do not focus on governance actions specifically involving the BOD. General Liability refers to risks associated with physical injuries or property damage resulting from the business’s operations. Business Interruption pertains to risks that disrupt the normal functioning of a business, such as natural disasters or operational failures. Criminal Activity encompasses illegal actions taken by individuals that can harm the company but is broader and not directed solely at governance issues. Thus, choosing the option concerning actions by owners against their BOD accurately reflects the focused nature of the risk in question.

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