CHILE Law and Practice Contributed by: Franco Acchiardo, Francisca Castro, Hugo Prieto and Manuel Diumenjo, Clyde & Co Chile
Liability and Accountability Directors may be held personally liable for mis - management of risks or failure to uphold fiduci - ary duties. Negligence leading to financial harm or regulatory breaches can result in legal con - sequences, including fines or removal from the board. Transparency and ESG Considerations Under newer regulations, directors must ensure companies disclose risk management practices and internal control measures in their annual reports. Additionally, directors in specific sectors such as banking, insurance, and social security face stricter regulatory requirements.
ing risk management policies prevent financial harm. Risk Oversight and Compliance Directors are responsible for identifying, evaluat - ing, and mitigating risks that may affect the com - pany. To this end, they must implement effective internal controls and ensure compliance with financial and operational regulations. Publicly traded companies are required to establish risk management frameworks, including cybersecu - rity and financial risk assessments. CMF Compliance Law No. 18,045 imposes strict reporting require - ments on publicly traded companies, and directors must ensure financial transparency. Directors oversee internal audits and verify com - pliance with accounting standards.
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