Legal Risk
Legal liabilities and criminal charges against an executive like the CEO or Board members can result from these types of risk.

All legal entities have legal liabilities typically covered by the Directors and Officers insurance.

Sarbanes Oxley laws when violated have resulted in Executives going to prison. Enron's pricing practices caused such a threat moving from risk to crisis.

In fact, the law was created as a result of identification of the ways companie
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