“In the strict reflection there is no difference regarding the legal basis of risk management between now and yesterday, also according to the old law the management was obligated to recognize developments which were threatening to the existence of the company” is the comment of the minister of justice to the debate of the “Gesetz zur Kontrolle und Transparenz im Unternehmensbereich (KonTraG)”.
Due to the raising rate of insolvencies, increasing number of company crises and because of the “corporate governance” discussion, the legislator recognized the need to develop a new law. The KontraG was introduced at the 5th of March 1998, which mainly influenced the “Aktien- and Handelsgesetzbuch”.
The consequences of this law are discussed highly controversal by experts. There is no general opinion, particularly in terms of the commitment of the introduction of a risk management according to the §91 Abs.2 AktG. The following analysis of the legal basis specifies the de facto obligations of a stock corporation management in regards to risk management.
Chapter 2 gives a theoretical and historical introduction into the topic of risk management. It is essential to understand the meaning of risk management in terms of how a manager, opposed to a lawyer, would define it.
Chapter 3 discusses the legal foundation of risk management. In order to understand the different obligations required by the new law, the chapter is separated into the analysis of the old legal foundation then the new.
Inhaltsverzeichnis (Table of Contents)
- 1 INTRODUCTION
- 2 DEFINITIONS AND REFERENCES
- 2.1 THE KONTRAG
- 2.1.1 Requirement of a Reform
- 2.1.2 Development and intention of the KonTraG
- 2.2 RISK MANAGEMENT
- 2.1 THE KONTRAG
- 3 RISK MANAGEMENT - A LEGAL ISSUE
- 3.1 RISK MANAGEMENT BEFORE THE INTRODUCTION OF THE KONTRAG
- 3.2 RISK MANAGEMENT AFTER KONTRAG
- 4 SUMMARY
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This seminar paper examines the legal implications of risk management within the context of German company law, specifically focusing on the impact of the KonTraG (Gesetz zur Kontrolle und Transparenz im Unternehmens-bereich). The paper aims to analyze the evolution of risk management practices in light of the legal framework, highlighting the role and responsibilities of corporate management in this area.
- The legal framework for risk management in German company law
- The role of the KonTraG in shaping risk management practices
- The responsibilities of corporate management in relation to risk management
- The interplay between legal obligations and corporate governance in risk management
- The impact of risk management on company performance and sustainability
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter introduces the topic of risk management as a legal issue in the context of German corporate law. The second chapter provides definitions and references relevant to the topic, specifically addressing the KonTraG and the concept of risk management itself. The third chapter delves into the legal implications of risk management, examining the landscape before and after the introduction of the KonTraG. This chapter analyzes the legal framework surrounding risk management and the responsibilities of corporate management in this domain.
Schlüsselwörter (Keywords)
This seminar paper explores the intersection of corporate law, risk management, and the KonTraG. Key terms and concepts include: risk management, corporate governance, legal framework, KonTraG, German company law, AktG, organizational entity, legal obligations, responsibilities, company performance, and sustainability. The paper delves into the legal implications of risk management practices within the German corporate environment, with particular emphasis on the impact of the KonTraG.
- Quote paper
- Christoph Mootz (Author), 2004, Business Risks as Legal Problem. Risk Management as Obligation for the Management, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/27593
