{
 "@context": "https://schema.org",
 "@type": "DefinedTerm",
 "@id": "https://wulfkaal.github.io/entities/business-risk",
 "identifier": "kaal:entity:business-risk",
 "name": "Business risk",
 "termCode": "business-risk",
 "inDefinedTermSet": {
  "@id": "https://wulfkaal.github.io/entities/index.json"
 },
 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
 "dateModified": "2026-07-29",
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 "sha256": "6ffab30a9a157016182089c51233aa12502fe9e45fbf97969ff8b4752d1844be",
 "additionalProperty": [
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   "name": "status",
   "value": "derived"
  },
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   "name": "claim_count",
   "value": 4
  },
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   "value": 2
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   "@type": "PropertyValue",
   "name": "year_span",
   "value": [
    "2010",
    "2013"
   ]
  },
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  }
 ],
 "subjectOf": [
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/1558614-027",
   "identifier": "kaal:claim:1558614-027",
   "text": "In In re Citigroup the Delaware Court of Chancery refused to extend the Caremark oversight duty, which concerns monitoring for illegal conduct, into oversight liability for business risk, so an inability to predict the future and an incorrect evaluation of business risk are not breaches of a director's oversight responsibilities.",
   "abstract": "under the Caremark line of cases would 133 not be extended to impose oversight liability for business risk",
   "citation": "Painter and Kaal, Initial Reflections on an Evolving Standard Constraints on Risk Taking by Directors and Officers in (2010). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1558614",
   "datePublished": "2010",
   "claim_type": "empirical",
   "confidence": "evidenced",
   "is_failure_mode": true,
   "scope_conditions": [
    "Delaware law; derivative claims premised on subprime exposure",
    "oversight liability requires showing the directors knew they were not discharging their duties or consciously disregarded them"
   ],
   "source_pdf_sha256": "e898211630f4116879329d6de8397523dca5b066864147421aa5cbc7429dc83b",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/kaal-2013-acomparativeperspectiveo-005",
   "identifier": "kaal:claim:kaal-2013-acomparativeperspectiveo-005",
   "text": "Under Delaware law as applied in In re Citigroup, directors' incorrect evaluation of business risk and their inability to predict the future do not violate the duty of oversight, so the Caremark duty to monitor is not extended to business risk.",
   "abstract": "According to the Delaware Chancery court, directors' incorrect evaluation of business risk and their inability to predict the future did not violate directors' duty of oversight.",
   "citation": "Kaal, A Comparative Perspective on the Limitations of the Duty of Oversight – A Comment on Lisa Fairfax (2013)",
   "datePublished": "2013",
   "claim_type": "empirical",
   "confidence": "evidenced",
   "is_failure_mode": false,
   "scope_conditions": [
    "Delaware law",
    "claims framed as failures to monitor business risk"
   ],
   "source_pdf_sha256": "ac5c955fe01209c54c78c4575c0b8bf570e5f1259c3f855510697cf51a32e59a",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/kaal-2013-acomparativeperspectiveo-006",
   "identifier": "kaal:claim:kaal-2013-acomparativeperspectiveo-006",
   "text": "Losses alone are not sufficient to hold directors personally liable for taking risks that lead to those losses, because risk is inherent in maximizing shareholder value.",
   "abstract": "Losses alone were not sufficient to hold directors personally liable for taking risks that lead to losses because risk is inherent in maximizing shareholder value.",
   "citation": "Kaal, A Comparative Perspective on the Limitations of the Duty of Oversight – A Comment on Lisa Fairfax (2013)",
   "datePublished": "2013",
   "claim_type": "condition",
   "confidence": "evidenced",
   "is_failure_mode": false,
   "scope_conditions": [
    "Delaware law",
    "risk taking that produces corporate losses"
   ],
   "source_pdf_sha256": "ac5c955fe01209c54c78c4575c0b8bf570e5f1259c3f855510697cf51a32e59a",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/kaal-2013-acomparativeperspectiveo-014",
   "identifier": "kaal:claim:kaal-2013-acomparativeperspectiveo-014",
   "text": "The German ARAG/Garmenbeck holding is diametrically opposed to In re Citigroup, where the Delaware Chancery Court declared that directors' incorrect evaluation of business risk did not violate the duty of oversight.",
   "abstract": "This holding is diametrically opposed to the holding in In re Citigroup where the Delaware Chancery Court declared that directors' incorrect evaluation of business risk did not violate directors' duty of oversight.",
   "citation": "Kaal, A Comparative Perspective on the Limitations of the Duty of Oversight – A Comment on Lisa Fairfax (2013)",
   "datePublished": "2013",
   "claim_type": "empirical",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "comparison of German and Delaware case law on business risk"
   ],
   "source_pdf_sha256": "ac5c955fe01209c54c78c4575c0b8bf570e5f1259c3f855510697cf51a32e59a",
   "status": "current"
  }
 ],
 "description": "4 claims in the published works of Wulf A. Kaal carry the concept tag 'business-risk'. Derived node: a roster, not an adjudicated definition."
}