1. Failure of management to execute due care and/or Due diligence can be termed negligence.
+ Culpable negligence is often used to prove liability.
2. Prudent Man Rule
+ Perform duties that prudent people would exercise in similar circumstances. Ex: Due Diligence: researching industry standards and best practices.
+ Due care: setting and enforcing policy to bring organization into compliance .
3. Downstream Liabilities.
4. Integrated technology with other companies can extend one's responsibility outside the normal bounds.
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