Glossary

The Dodd-Frank Act includes a clawback provision that allows companies to recover (i.e., "claw back") monies paid to current and former directors and officers under incentive compensation plans. Such repayments are required under the law if a subsequent financial restatement eliminates the basis for these incentive payments. For example, assume a company must issue a financial restatement that states lower earnings than were initially reported. If, under the company's incentive compensation plan, bonuses were paid as a result of these (originally) higher earnings, under Dodd-Frank's clawback provision, executives are required to return such payments to the company.

A cleanup fund is a life insurance policy purchased specifically to fund the final expenses associated with the insured's death (e.g., funeral expenses).

The Clean Air Act (CAA) of 1970 is a federal act regulating the emission of harmful pollutants into the air. It requires corporations to list pollutants that may adversely affect human health and establishes air quality standards. The CAA contains provisions for civil and criminal penalties and enforcement through citizen suits.

In an environmental context, clean closure is generally defined to be achieved when the governing regulatory agency issues a "No Further Action Letter" or comparable acceptance that the project's cleanup goals have been achieved.

The Clean Water Act (CWA) of 1972 is a federal act that requires monitoring of discharges into US waters. The CWA contains provisions for abatement actions, penalties, fines, and imprisonment of responsible parties.

Clearance, in most of the Canadian workers compensation provincial funds, is when an entity utilizing the services of another organization may be held responsible when that organization fails to pay the premium due the fund. The third party can request that the fund certify that the other organization is in good standing with the fund and thus be cleared of any responsibility for the payment of outstanding premium. This clearance normally takes the form of a certificate or letter issued by the fund.

In certain jurisdictions, clergy must maintain the confidentiality of "privileged communications" with penitents or counselees—called the clergy-penitent privilege. In some cases, this can pose a legal challenge in weighing how clergy-penitent privilege interacts with mandated reporter laws, in which clergy could be required to report potential child abuse to authorities.

A click-wrap agreement is a non-negotiated contract that is presented and formed on the Internet that prohibits a user from downloading software, purchasing goods or services, or accessing a Web page unless the user manifests assent to the contract's terms by clicking on an "I Agree" or "I Accept" button. Click-wrap agreements offer companies more protection for their goods and services than those afforded under federal intellectual property laws. Furthermore, click-wrap agreements provide an efficient way for website owners, Internet service providers, and other online service providers to create contracts with website users.

The client company in an employee leasing arrangement is an organization that leases all or part of its workforce on a long-term basis from a third party (typically an employee leasing company/professional employer organization (PEO)). The potential benefits for the client company associated with this type of arrangement include reduced administrative costs, access to risk management services like safety and loss control, and higher-quality, more cost-effective employee benefits.

Climate change risk is the risk facing business and governmental entities resulting from climate change and affecting natural and human systems. A common approach in dealing with this loss exposure focuses on reducing the vulnerability associated with climate risk by incorporating climate-sensitive decision-making in the risk management process. The risk manager takes climate-related decisions or actions that make sense in overall business strategy terms, whether or not a specific climate threat actually materializes in the future. Three examples include greenhouse gas (GHG) emission reduction efforts, energy conservation, and the adoption of green building measures and approaches. Climate change risks include physical risks, litigation risks, reputational risks, stockholder risks, regulatory risks, and competition risks.