Over the past decade, several high‑profile corporate scandals have highlighted the serious consequences of poor governance. Weak oversight, unethical leadership, and failures in accountability have led to financial losses, legal penalties, and damaged public trust. Examining these scandals helps illustrate how governance failures can undermine even the largest and most successful organizations, while also offering important lessons for companies, regulators, and stakeholders

Answer is definitely YES... Environmental, Social, and Governance ( ESG ) factors can create systematic risk when they affect the broader market or economy, not just individual firms. Here’s how it happens: 🧩 1. Mechanisms: How ESG Creates Systematic Risk a. Environmental (E) Climate change can lead to extreme weather events , resource scarcity, and regulatory shifts (like carbon pricing). These changes impact entire sectors (energy, agriculture, insurance) and supply cha