Chapter 5 Board operations

Question 1

what are the basic building blocks of board’s operations

Answer 1

• Substantive issues
• Information architecture
• Group Dynamics

Question 2

Focus on substantive issues =

Answer 2

Devote enough time and attention to the topics and issues that really matter

Question 3

Divide agenda topics in five categories:

Answer 3

• compliance
• people
• operating effectivness
• strategy
• urgent concerns

Question 4

What is Group Dynamics ?

Answer 4

Quality of Interactions

Question 5

what is the good pratices for Group Dynamics ?

Answer 5

• Rules of engagement
• Board leadership
• Executive sessions
• Offsite meetings
• Board evaluation
• Managing the unwanted director

Question 6

Explain the information architecture

Answer 6

Give the right information in the right form at the right time

Question 7

What is the different channels of information for directors ?

Answer 7

• Board briefing
• Management letter
• Employee Survey
• Director Outreach
• Reports from committees

Question 8

What is the Corporate Strategy ?

Answer 8

is how a company expects to create long-term value for
shareholders and stakeholders, within the confines of corporate mission

Question 9

What are the Key performance measures ? KPIs

Answer 9

• Financial and non-financial
• evaluate management performance and award compensation

Question 10

3 Strategic Pillars :

Answer 10

Capital allocation
Operations
Sustainability

Question 11

What is Risk Management ?

Answer 11

loss of value that occurs when things do not work out as planned.

Question 12

Who determine the Risk tolerance of the corporation ?

Answer 12

The board

Question 13

TRUE or FALSE ; the risk-free is possible ?

Answer 13

FALSE

Question 14

Some of the risks that the firm faces are:

Answer 14

operational, financial, reputational & compliance

Question 15

What is Risk management ?

Answer 15

Risk management is the process by which a company evaluates and reduces its risk
exposure

Question 16

The Labor market por CEOs is ;

Answer 16

not efficient
tight

Question 17

who are the most promising source of candidates ?

Answer 17

Internal executives

Question 18

Reason of the CEO turnover :

Answer 18

• retirement
• recruitment to another firm
• dismissal for poor performance
• disagreement with the board over corporate strategy
• misconduct

Question 19

New CEO, what are the advantages of insiders ?

Answer 19

• familiar with the company
• bring continuity & smooth transition
• the board has opportunity to evaluate their performance

Question 20

An external successor might be preferable when:

Answer 20

• The company needs to change direction.
• There is no insiders with sufficient talent.
• An outsider with unique experience is needed

Question 21

True or False : for the CEO succession plan Utmost confidentiality is required until a decision is ?

Answer 21

TRUE