Dodd & Frank Bill giving Directors and Officers some issues

With the passage of the Dodd Frank bill to prevent another economic meltdown , directors and officers find themselves under the microscope. With the passage of the bill there is a whistle blower clause that gives a hefty reward for insiders giving up info on how the directors and officers are running their companies. The problem with this is that the reward is large enough that it could cause fraudulent claims just to collect. Now company leaders are going to have to risk manage the possibility of defending themselves from these whistle blower claims. Buying insurance is one way to transfer the risk but there is limited coverage out there. Full operations and financial transparency is another way along with good record keeping. Anyway you cut it, the Dodd Frank bill is going to change the way D& O risk managment is looked at and practiced. Until next time be careful out there and know your risks. K

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