The supervision of strategy and risk in German two-tier boards: lessons learned from the crisis

Marc Eulerich and Markus Stiglbauer

International Journal of Management Practice, 2013, vol. 6, issue 3, 220-234

Abstract: The boards' role to supervise corporate strategy and risk determines the efficiency of 'good' corporate governance. Not only in the highlight of the financial crisis, board members, are challenged by a critical need for pro-active supervision. We examine the effects of the crisis on German supervisory boards' work and conclude first, which supervisory boards work in a pro-active way: They support the executive board in strategy development and implementation and try to anticipate the strategic development of the company. Secondly, boards change their meeting schedule immediately in case of a potential crisis. Thirdly, besides the focus on financial data, board members use other sources of information and a stakeholder perspective as an important source to supervise the executive board's work.

Keywords: corporate governance; supervisory boards; two-tier boards; financial crisis; supervision; Germany; corporate strategy; risk assessment. (search for similar items in EconPapers)
Date: 2013
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