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Juan Rodulfo publishes his new Book: Politics for Millennials

Left Right Politics for Millennials by Juan Rodulfo

LEFT RIGHT: Politics explained for Millennials, GENs XYZ and future generations by Juan Rodulfo

Available on his website juanrodulfo.com is the new book of Juan Rodulfo, titled LEFT RIGHT: Politics explained for Millennials, GENs XYZ and future generations, in an effort to help humans understand POLITICS, and get the most of Us involved in it, since our Planet is in danger because of politics designed to profit a small group of people behind a huge conglomerate of corporations, imposed by governments all around by force or simple by ignorance of large portions of Planet Earth Population.

Presented in simple language, social media like format, the author offers the IMDb of politics, with digestible concepts, pictures, likes and dislikes to guide you to see politics the way your human and citizen condition must see it, with responsibility, awareness and conviction that your vote is your voice but only when given to the cause that really shares your interests, as planet earth inhabitant or else.

If you feel that the planet is in danger because of global warming, if you are pro-immigration, anti-war, pro-LGBTQ, pro-civil rights, if you are not NAZI-KuKuxKlan-Proud Boy, if you are carrying student debt, if you are a worker, if you are human, if you know that States charge taxes in order to distribute wealth, if you have ever heard about the Social Contract, you may be a Socialist, there is nothing wrong with it! Do not panic, you are not the Venezuelan Dictatorship nor they are Socialists. Just take a look inside to fact check it.

Left Right: Politics explained for Millennials, GENs XYZ and future Generations

El liderazgo de las mujeres, vital para la recuperación tras la crisis de la COVID – Agencia EFE

liderazgo mujeres recuperación covid

Helen Clark, de WPL; Katrín Jakobsdóttir, primera ministra de Islandia; Phumzile Mlambo-Ngcuka, secretaria general de ONU Mujeres y Amanda Nguyen, CEO de Rise durante la primera jornada del Foro.

Cristina Bazán | Guayaquil – 9 noviembre, 2020

El liderazgo de las mujeres es vital para la recuperación tras la crisis de la COVID-19 que les ha afectado social, laboral y económicamente más que a los hombres. En eso han coincidido las líderes mundiales que han participado en la primera jornada del Foro Global de Reykjavík que hasta el 11 de noviembre reunirá a más de 800 presidentas, vicepresidentas, congresistas y directoras de organizaciones que luchan a diario a favor de la igualdad para hablar sobre los retos políticos y sociales del futuro.

“Las mujeres y niñas de todo el mundo necesitan que nos aseguremos de que este año será más que COVID19. Es necesario que el mundo dé un paso adelante por la igualdad y un mundo y un futuro más justo. Aquí es donde las mujeres líderes de todo el mundo juegan un papel crucial“, ha mencionado Silvana Koch-Mehrin, presidenta y fundadora de Women Political Leaders, organizadora del evento junto al Gobierno y el Parlamento de Islandia.

En la primera jornada de este Foro, que se ha realizado por tercer año consecutivo, aunque esta vez de forma virtual, han participado líderes como Phumzile Mlambo, directora ejecutiva de ONU Mujeres; Katrín Jakobsdóttir, Primera Ministra de Islandia y Hillary Clinton, exsecretaria de Estado de los EE. UU, entre otras, quienes han enfatizado en la necesidad de que más mujeres asuman el poder para ayudar a otras.

Unir fuerzas para cambiar el mundo

Que las mujeres y las líderes mundiales estén unidas es crucial para enfrentar una nueva normalidad que ya está amenazando con ampliar las brechas de desigualdad en varios países.

Por eso, bajo el lema “poder, juntas” han englobado una serie de conversaciones sobre cómo construir un futuro mejor “donde el liderazgo de las mujeres no sea la excepción”. “Uniendo fuerzas, podemos cambiar el mundo”, ha enfatizado la fundadora de WPL.

Desde la dirección de diversas organizaciones, países o parlamentos, las líderes que han formado parte de la primera jornada se han mostrado preocupadas por el freno o el retroceso que han sufrido las mujeres durante estos seis meses de pandemia, pues fueron las primeras despedidas, las que estuvieron a cargo de los enfermos o de la familia y las que sufrieron mayor violencia.

“Esta pandemia no ha tenido precedentes, pero ha sido trágicamente predecible en un sentido: como hemos visto a raíz de muchos desastres, la propagación de la COVID-19 ha sido seguida por un aumento de la violencia sexual“, ha dicho Amanda Nguyen, activista y CEO de Rise, una ONG que tiene como objetivo proteger los derechos civiles de las sobrevivientes de agresión sexual y violación.

Hiltrud Werner, del Grupo Volkswagen, ha señalado que la proporción de mujeres en puestos directivos “se está desacelerando en lugar de crecer”. “Eso es preocupante y se lo atribuimos a la pandemia. Necesitamos ver más impulso del sector público para dinamizar el sector privado”.

“Creo que toda mujer que ha logrado abrir una grieta en el techo de cristal también tiene la obligación de dar la mano a otras mujeres para ayudarlas a entrar en ese espacio de liderazgo. Doy el 5 % de mi día al empoderamiento femenino”, ha resaltado.

“Necesitamos a más mujeres en el poder que quieran empoderar a otras”

La exsecretaria de Estado de Estados Unidos, Hillary Clinton, se ha referido al papel de las mujeres en la política, un avance que cree que es “muy necesario” para alcanzar la igualdad y ha destacado el triunfo de Kamala Harris en las recientes elecciones. Una victoria que la ha convertido en la primera mujer vicepresidenta de su país.

Sin embargo, Clinton ha precisado que, aunque se ha trabajado duro, aún queda mucho por hacer. “Tenemos que continuar denunciando el sexismo y la misoginia“, ha señalado.

“Seamos claros, las normas, los valores, los prejuicios profundamente arraigados que, lamentablemente, siguen siendo tan frecuentes continúan frenando a las mujeres. E incluso lo trabajan de una manera muy perversa, como saben, permitieron que las mujeres se contuvieran, sintieran que no son lo suficientemente buenas, que no son lo suficientemente inteligentes, que no están lo suficientemente preparadas para un trabajo o para postularse para cargos públicos en una democracia, para ponerse de pie, para defender sus derechos y los derechos de otras mujeres y niñas”, ha mencionado.

Clinton cree que en estos próximos años, el progreso político de las mujeres debe enfocarse no solo en lograr que las mujeres estén en el poder, “porque seamos honestos, hay algunas mujeres en el poder que cierran la puerta a los derechos de las mujeres y a las oportunidades de las mujeres”, sino en conseguir mujeres “que estén muy decididas y comprometidas a aumentar el espacio para las mujeres en la familia, la comunidad, el gobierno, los negocios y la sociedad en general”.

“Necesitamos mujeres en posiciones poderosas para realmente hablar por todas las mujeres, pero particularmente por las mujeres marginadas, por las mujeres pobres, por las mujeres que de otra manera no tienen una plataforma tan fuerte y una voz tan poderosa”, ha afirmado la líder estadounidense.

Y ha agregado que se necesita tener más mujeres en el poder “que quieran ayudar a empoderar a otras mujeres y más hombres como aliados para el empoderamiento de las mujeres y para crear un conjunto de oportunidades tan claras y abiertas para que las mujeres persigan sus propios intereses y sueños”.

Igualdad, cambio climático y financiación

Seis paneles en los que se abordará la importancia del acceso a financiación por parte de las mujeres, los obstáculos que aún persisten y cómo el cambio climático les ha afectado de manera especial marcarán la jornada de este 10 de noviembre.

En estas charlas participarán Tao Zhang, del Fondo Monetario Internacional; el doctor Tedros Adhanom, director general de la Organización Mundial de la Salud; Kolinda Grabar Kitarović, expresidenta de Croacia y Erna Solberg, Primera Ministra de Noruega.

En el panel sobre cambio climático, los especialistas debatirán soluciones intersectoriales para combatir la crisis climática y las desigualdades estructurales que la sustentan, cómo las mujeres líderes pueden dar forma a sociedades más resilientes y cómo se puede colaborar para construir una sociedad más inclusiva, equitativa, sostenible y próspera, donde nadie se quede atrás.

Bitfinex to compete with DeFi with new borrowing service

Amid a year of significant growth for the decentralized finance space within the crypto industry, Hong Kong-based crypto exchange Bitfinex has unveiled its new lending service today, called Bitfinex Borrow. 

“Bitfinex Borrow is a borrowing platform,” Bitfinex chief technology officer Paolo Ardoino told Cointelegraph. “This particular offering isn’t about lending out your crypto and obtaining a rate of return on it,” he said. “The crypto loan is obtained via Bitfinex’s peer-to-peer lending platform, though it may consist of a pool of available credit,” he explained. So essentially, crypto borrowing and loans are not directly tied to a direct and immediate opposite party. 

Bitfinex Borrow acts as a way for Bitfinex to offer loans to customers. When customers put up crypto assets as collateral in exchange for a loan, Bitfinex then allocates those assets to a different customer as part of a separate product called Bitfinex Funding — hence the peer-to-peer classification. “Bitfinex Funding, Lending Pro and Bitfinex Borrow are all part of the same, peer-to-peer lending markets. These are different products, using the underlying same pool of funding,” Ardoino said. 

Customers can receive U.S. dollars or dollar-pegged stablecoin Tether (USDT) in return for their crypto assets, which Bitfinex holds until the loan is paid back, per Bitfinex’s announcement.

Collateral is something a borrower gives a lender to hold until the loan is paid back. At this time, Bitcoin (BTC) and Ether (ETH) are the two accepted forms of collateral on Bitfinex Borrow. 

Interest and speculation in the decentralized finance, or DeFi, space reached bubble territory in 2020. Random new projects have seen immediate parabolic growth, with their related assets also rocketing in price. What started as a fairly straightforward system of crypto-based loans and borrowing turned into speculators chasing the highest returns on their capital allocations.

The red-hot DeFi sector cooled slightly as Bitcoin took center stage with its upward price action, although the past few days have seen soaring DeFi price action return. Bitfinex Borrow seems more similar to the DeFi loan structure seen prior to the recent bubble than a continuation of the parabolic trend. Before speculators started yield farming, loaning and borrowing capital across multiple projects and platforms in search of massive compounded interest, DeFi acted as a fairly straightforward way of putting up crypto collateral in exchange for stablecoins. Borrowers could use those stablecoins for their needs without selling their crypto holdings. 

The service comes with a fairly wide range of annual interest rates, between 5.5% and a steep 18.25%, pending a number of factors such as the length and size of each loan, Bitfinex’s statement noted. With regard to the time component, interest rates scale up in cost based on the loan period, with longer-term loans incurring greater rates, according to Ardoino. Additionally, customers can only hold borrowed funds for 120 days.  

Two other options also come into play when it comes to interest rates on these loans: fixed rates, or floating rates derived from Bitfinex’s Flash Return Rate, or FRR.

“The FRR represents a moving average of interest rates proposed on Bitfinex’s peer-to-peer financing market,” Ardoino explained. “The moving average of what is available in the market is recalculated every hour,” he added. “The crypto loan is provided on a peer-to-peer basis through Bitfinex’s financing matching engine (separate and apart from the trading matching engine).”

Customers with partial verification status on Bitfinex must keep their borrowed assets on the exchange, but those with top-tier verification can withdraw such funds, the statement said. Bitfinex Borrow lets customers pay back their loans all at once or in segments. 

Although DeFi may unlock further possibilities in the crypto industry, the niche has also seen its fair share of hacking activities

Number of Bitcoin ATMs Up 85% This Year as Coronavirus Drives Adoption

The number of bitcoin automated teller machines (ATMs) across the globe has surged this year amid the coronavirus-induced shift toward contactless payments.

Bitcoin ATM installations have increased by 85% to 11,798, outpacing the previous year’s near 50% rise by a significant margin, according to data source Coin ATM Radar.

The spike demonstrates the rising popularity of bitcoin as a payment mode. The fear of getting a coronavirus infection has accelerated the growth in the broader contactless payment market this year, according to Global Trade Magazine.

Bitcoin’s borderless network facilitates a seamless transfer of money in any amount from anywhere across the globe, through any mobile or computer, and at relatively lower fees than traditional banking channels.

A bitcoin ATM allows a person to purchase the cryptocurrency by using cash or debit card. Some machines facilitate the purchase of bitcoin and the sale of cryptocurrency for cash.

The U.S. added over 800 ATMs in October alone and is leading cryptocurrency adoption, followed by Canada and Germany, as noted by Coin ATM Radar.

With several public companies investing in bitcoin and online payments giant PayPal adding support to the cryptocurrency, mainstream adoption could continue to grow.

Disclosure

How to Shame a Dictator – The New York Times

Op-Docs

How to Shame a Dictator

Their neighbors carried out crimes against humanity — and were exposed for it.

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Atención! Murderer Next Door

What to do when your neighbors have carried out crimes against humanity.

In the mid 1990’s, we found ourselves in a tragic and uncomfortable situation of living amongst known torturers, kidnappers, and murderers. Genocide perpetrators had total liberty and freedom to navigate the same spaces that we lived in our city. At a bar, sitting next to your table, you could find one of the worst perpetrators of forced disappearances. In this photo, you can see my father in 1974; he was thirty years old. My father, Enrique Jose Juarez, was a leader in the Peronist youth movement. He was a filmmaker. He disappeared on December 10th, 1976. To this day, they have remained silent and there has been no mention whatsoever of what they did to his body. MONTAGE SEQUENCE TITLE CARD: Between 1976 and 1983, over 30,000 people were killed or disappeared by a military dictatorship in Argentina. TITLE CARD: In the mid 1990’s, the children of the disappeared organized under the name of HIJOS. They staged peaceful protests they called ‘Escraches’ to demand justice, which had been denied them by amnesty laws. Buenos Aires Argentina, 2001 Chanting: “Murderer, Murderer, Murderer” The red-paint filled balloon signifies that the house is stained with blood. We did not choose sticks or stones or violence. The “escrache” strategy is a way of revealing that there is an unpunished murderer adjacent to where you live. They shouldn’t be in your neighborhood, they should be in prison, but if they are in your neighborhood, you know who they are. It is not about killing with your own hands and killing the members of the military. Instead the purpose is to build on this idea of justice and anti-impunity. We are going to do an escrache on a perpetrator of mass murder. If there’s no justice, there’s escrache. Our demand was justice. Trials and Punishment. The previous governments hadn’t paid any attention. “Trial and Punishment” We had to peacefully publicize what these people had done. Letting everyone know that this person was a rapist, a torturer, a murderer. Saying it loud, with paint, flyers and crowds of people in the streets, drumming and chanting. “Attention neighbors, a murder is living next door to you!” The point of the escrache is that it settles and it starts creating a ripple effect. We always said that the escrache starts the next day. When the action was over, when we had already shown who lived there, and what they did. The perpetrator’s social isolation in the neighborhood becomes a symbol of his imprisonment. The visible joy was a powerful force as it had to counterbalance the fact that we were branded as violent or as doing something illegal by a large segment of society. What is unacceptable is to oppose the movement, and say “Don’t do anything”. It is precisely that silence that makes impunity possible. Many times we were repressed during these actions, with gas, batons; but at the same time our numbers grew. Escrache is our way of transforming memory into action. Tomorrow, the newsstand owner decides not to sell to him, the tax driver decides not to drive him, the baker won’t sell to him. The next day, the struggle multiplies. It worked because many people did not know that the person greeting them everyday was responsible for the crimes of the dictatorship. My mother was a wardrobe designer for theater and film. She arrived at the Devoto prison in bad shape healthwise. They were detained without being accused or charged, with no indication of the duration of the captivity. We stayed with my grandparents. We asked my aunt what we could bring my mother in prison. She said we should bring her an apple because the military wouldn’t let you bring anything through. “They’ll let you through because you’re a kid”, she said. My mother took a bite out of the apple. And she passed it to her friends. I told her the apple was a present for her. And she told me that they shared everything. That I would understand why later in life. Jorge Rafael Videla was one of Argentina´s most depraved and atrocious perpetrators of mass murder. He was the ideologue of the massacre that occurred during the dictatorship from 1976 to 1983. He is ultimately responsible for all of the forced disappearances. He was the fundamental figure. Hence the importance of him being in prison because if he was not detained, everyone underneath him would be absolved. The Videla escrache was symbolic for us. We rallied more than 10,000 people. My grandson would kill me if he saw me. We stopped by the Military Hospital, where many babies were born and subsequently, were stolen from their mothers. “Where are our siblings?” – H.I.J.O.S At this hospital, mothers who had been abducted gave birth and lost their babies. “Videla, Murderer” Videla was one of the organizers of the theft of the babies belonging to disappeared women. The majority of the pregnant women were killed after they gave birth. Many of these children began living with a different name and a different identity. The grandchildren whose identities were recovered were able to tell their story. On October 8, 2004, I was able to discover my true identity thanks to H.I.J.O.S. and to the grandmothers´ movement. For me, the most powerful ending happened in front of Videla´s home. He was living comfortably in a luxury apartment. We rented a scissor lift that our friend climbed on. We displayed the victims´ faces in front of the perpetrator´s house. Our friend ends up at around the same height as Videla’s balcony and speaks to him directly. Society judges you and everyone here says they do not want to live next to a murderer. They want you to rot in prison. Murderer! Murderer! The day we were at Videla´s house, the window shutters were closed, you could not see inside or see if there was anyone there. The person usually does not come out and says “I didn’t do it” or “What is happening?” On the contrary, they hide even more when there is an escrache. It’s not a dialogue with the mass murderer. It’s a message from society to that person and to the people who have the power to put him or her in prison. The Videla escrache was a milestone. Shortly thereafter [Change to: A little later] he was tried and sentenced to prison for the case of the stolen babies. He went to jail, as anyone with multiple life sentences should, instead of living at home. The powerful symbol of Videla’s dictatorship collapsed with his imprisonment and subsequent death in prison. It was no longer possible that the most emblematic perpetrator of state terrorism could go unpunished forever. In those years, the silence started to reverse itself. Head of ESMA Detention Center Jorge Eduardo Acosta Sentenced to life imprisonment, 2011 Commander Alfredo Astiz Sentenced to life imprisonment, 2011 Navy Lieutenant Commander Ricardo Cavallo Sentenced to life imprisonment, 2011 Naval officers Manuel Garcia Tallada and Adolfo Donda Sentenced to life imprisonment, 2014 and 2011 At that time, it was unimaginable to hold trials for crimes against humanity. These trials started in 2003, when Néstor Kirchner assumed the presidency and he committed to the principles of “memory, truth and justice”, which human rights organizations demanded become government policies. My mom had asthma. No one dies from it. And she died due to lack of medical attention. There is a lawsuit pending trial for my mother´s case. We are suing the Bureau of Prisons and those who participated in her death. At least we’ve gotten a real conviction, not just social condemnation. Of the people who disappeared my father, along with so many other activists. The process of memory, truth and justice in our country was a collective achievement. It was an unprecedented and unparalleled example for the world. 30,000 disappeared. Present! Now and always! We have a saying, “The impossible only takes a little longer.” It took us many years to re-open cases of crimes against humanity to prosecute and convict the murderous criminals in this country. But we did it. Escrache was a useful tool during times of impunity. Silence is over in our country, and that is an advantage. But we have to keep fighting for the collective memory and for the 30,000 disappeared. There is still a lot left to escrache to this day.

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What to do when your neighbors have carried out crimes against humanity.CreditCredit…Horacio Villalobos/Corbis, via Getty Images

Mr. Mattison is a filmmaker.

Faced with a lack of prosecution of those accused of crimes against humanity committed during Argentina’s military dictatorship, family members and descendants of the country’s estimated 30,000 disappeared took action. In the mid-1990s, they began gathering outside of accused perpetrators’ homes and workplaces to publicly shame them and raise awareness about the government’s systematic and brutal targeting of its people — and how it had gone unpunished. The human rights group HIJOS (Sons and Daughters for Identity and Justice Against Forgetfulness and Silence) led and labeled this direct-action style of protest “escrache,” or exposure.

After years of organizing and sustained pressure from activist groups like HIJOS, the amnesty laws protecting the perpetrators were repealed. In the short documentary above, we see how peaceful protests ensured that the perpetrators could no longer live in quiet anonymity. Now “escrache” is an important tool for activists seeking justice worldwide.

Sean Mattison is a filmmaker, photographer and visual artist.

The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: [email protected].


Op-Docs is a forum for short, opinionated documentaries by independent filmmakers. Learn more about Op-Docs and how to submit to the series. Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram.

Make Tax Planning a Part of Your Company’s Risk Management Strategy

Phil Ashley/ Getty Images

Companies face a taxpaying dilemma: Paying less means higher earnings and a higher value for shareholders, but overly aggressive tax minimization strategies can lead to fines, public scrutiny, and/or reputational damage. Research finds that companies that incorporate their tax-planning decisions into their overall enterprise risk management are better able to find that balance of risk and reward. To do this, boards should 1) Take responsibility for risk oversight; 2) Engage in risk-monitoring activities on a regular basis; and 3) Foster an appropriate risk mindset.

The five largest U.S. companies (Apple, Microsoft, Alphabet, Amazon, and Facebook) reported an average income tax liability of $7.3 billion in their 2019 annual reports. Yet those same companies have repeatedly faced criticism from politicians and activists for aggressively avoiding paying billions more.

Taxes are one of the largest expenses any company faces; paying less can mean higher earnings and, in turn, higher value for shareholders. So it is no surprise that companies seek to reduce the amount they pay.

Overly aggressive tax minimization, however, can lead to significant adverse outcomes, such as costly and unexpected IRS fines along with public scrutiny and reputational damage. Microsoft and Hewlett Packard have faced criticism from Congress for their tax avoidance policies, and the Senate Permanent Subcommittee on Investigations has labeled Apple a “U.S. tax dodger.” Six of the largest companies in Silicon Valley were recently identified by Fair Tax Mark as having avoided more than $100 billion in taxes over the past decade. Corporate executives are challenged with “threading the needle” between shareholder expectations to not pay more than their “fair share” of taxes and government and the general public’s expectations that they should pay at least their fair share. In sum, companies face a “not too hot, not too cold” Goldilocks problem. What are they to do?

Our research indicates that strong board of director involvement in a company’s risk oversight as a part of enterprise risk management (ERM) helps companies find that balance of risk and reward in terms of tax-planning decisions. Using the 2014 annual proxy disclosure statements for a sample of companies from the Russell 1,000, we measured companies’ level of board involvement in risk oversight and evaluated their association with previously researched measures of tax planning and avoidance strategies for the years 2014 through 2017. We found that companies where the board is most engaged in important risk-oversight activities pay lower taxes, on average, and face a lower risk of regulatory scrutiny or reputational damage, as evidenced by less-aggressive shifting of income abroad and 31.0% less-volatile income taxes relative to similar companies with lower levels of risk oversight.

ERM helps boards and executives develop holistic approaches to identifying and monitoring all kinds of risks that could potentially affect the achievement of strategic objectives. Its focus is not on indiscriminate risk minimization but on identifying and understanding the company’s portfolio of risks so that management and the board can make sound strategic decisions that balance various risks against the pursuit of growth. Highly engaged boards provide a culture and foundation that can maximize positive outcomes (such as lower tax payments) while minimizing potential negative outcomes (such as higher tax risk).

Our research indicates that boards can do three things to improve their involvement in companies’ ERM systems, resulting in better tax outcomes.

1. Take responsibility for risk oversight.

Boards that engage in and “own” the overall responsibility for monitoring the company’s ERM, rather than delegating that responsibility elsewhere within the organization or to a board subcommittee, establish a mindset that embraces risk oversight as a key aspect of overall board governance. This sends a signal to company leaders that risk management is to be taken seriously.

To start, the board should formally and publicly acknowledge its responsibility for risk oversight in its annual proxy statement. This public disclosure lets management and key stakeholders know that the board will keep a careful eye on the risk oversight process. Moreover, it commits the board to incorporating risk considerations into its decisions and its evaluations of the company’s strategic decisions, including those associated with tax avoidance policies.

2. Engage in risk-monitoring activities on a regular and systematic basis.

Regular engagement in holistic risk-monitoring activities helps the board consider how strategic decisions in one area of the business might trigger risks in other areas. These activities include routine board discussions about the top risks identified by the ERM system and evaluations of emerging risks that are not already on management’s radar. Best practice suggests that boards proactively review the company’s risk-management policies and procedures on at least an annual basis to ensure that processes are in place to identify and tackle key areas of risk exposure, including tax-related risks.

Although it’s important for many financial areas, this process is especially relevant to taxes, owing to the constant evolution and updating of tax laws. Regular monitoring of tax-related risks should help ensure that the board remains comfortable with the outcomes of the company’s ever-evolving tax-planning initiatives.

3. Foster an appropriate risk mindset.

Boards are critical to ensuring that company executives maintain a “tone at the top” that balances the goal of increasing company value against the need to ensure appropriate risk-taking. By fostering an appropriate risk mindset, the board plays a key role in establishing the company’s risk appetite and ensuring that management’s strategic planning decisions are made within the bounds of stakeholders’ appetite and tolerance for risk-taking. Because tax-planning initiatives present the company with both risks and rewards, boards must encourage management to evaluate any potential tax savings against any associated tax-related risks.

Building a strong ERM system is not a costless endeavor. It calls on managers and other leaders to engage in risk identification, assessment, and management efforts, all of which require both time and monetary investment. Although some boards and executive teams may wonder if the investment is worth it, our research provides evidence of a tangible benefit: better tax outcomes.