Board members can protect their companies (and their own reputations) by asking management about root cause identification, compliance with post-settlement government obligations and more.

Regarding internal investigations, the old saying — “Just the facts, ma’am” — hardly scrapes the surface of the board’s responsibility. Boards must also oversee the remediation process and compliance with post-settlement obligations. Vigilant, nonexecutive board member oversight of remediation earns government confidence, leading to optimal settlement terms and avoiding a government-imposed monitor. Being proactive also protects individual board members’ reputations.

This article suggests six key questions boards to ask management, including:

• What steps did the company take to identify the root causes, including the process, team, and results?
• How did management determine whether the perpetrators committed other wrongdoings and if others in the company engaged in similar misconduct?
• How did the company respond to the root cause analysis, and what measures did it take to prevent recurrence?
• How does the company assess the effectiveness of the remediation measures and enhanced compliance program?
• What is the process for ensuring compliance with post-settlement government obligations?
• What steps has management taken to prepare for CEO, CFO and CCO certifications?

Read the full article in Directors and Boards.