case study

Citic Pacific: Foreign Exchange Scandal

1. How has the failure to separate ownership, the board, and management impaired the company's corporate governance?

2. Discuss how the compensation system may have impacted the risk appetite and corporate governance of the company.

3. Which do you think played the most significant role in CP's scandal - weak board oversight, failed internal control, or a flawed compensation system?

4. Other than those already taken by the company, how else can they improve corporate governance and internal control?