Which scenario best illustrates a risk of concentrating authority with the board chair?

• A. Improper concentration of authority
• B. Robust committee independent decision-making
• C. Clear separation of management and governance
• D. Defer all decisions to external consultants

Answer: (A)

Concentrating power in one person creates weak governance controls because decisions can be made without proper checks and independent input. When the board chair holds most or all authority, there’s less opportunity for other directors and committees to challenge, review, or provide diverse perspectives, which increases the risk of biased or unchecked decisions and reduces accountability.

The scenario that shows this risk most clearly is where authority is improperly concentrated in the board chair. It directly demonstrates how governance can falter when a single figure holds too much control.

By comparison, independent decision-making by committees shows distributed authority and healthy checks and balances; a clear separation of management and governance reinforces appropriate boundaries; and deferring all decisions to external consultants demonstrates reliance on external input rather than centralizing internal power in one leader.