5.2 Board decision making - an overview

Question 1

According to both Hawkin’s framework for boardroom meeting conversations and Pick’s research on boards in action, which is the most important element of board activity?

Answer 1

Decision making

Question 2

Which ICSA guidance has a section on board decision making?

Answer 2

The 2018 ICSA Guidance on Board Effectiveness

Question 3

Kahneman and Tversy created which popular theory of economics?

Answer 3

Behavioural economics (which aims to work practivcally in the real world)

Question 4

Good decision making can sometimes lead to bad outcomes and vice versa. What is the Business Judgement Rule in corporate trials?

Answer 4

A rule that evaluates whether boards have taken the most appropriate steps and demonstrated a reasonable process that facilitates good business judgement.