Glossary

A materiality assessment is the process a company uses to identify, rank and approve the sustainability topics that matter most, either to its stakeholders, to its finances, or to both, as the basis for reporting.

Minority shareholder protection covers the laws and practices that stop controlling shareholders and managers from using their power to take value from smaller investors or treat them unfairly.

Misconduct is behaviour by a member of an organisation or profession that breaks its rules, the law or accepted standards, such as fraud, harassment, falsifying records or abuse of position.

Misrepresentation is a false statement of fact, or a misleading silence, that leads another party to enter a contract or make a decision, and which gives that party legal remedies.

A model inventory is a central register of every model or AI system an organisation uses, recording its purpose, owner, status and risk rating so that none escapes review.

A money mule is a person who receives and passes on money for someone else, knowingly or not, often for a small fee, helping criminals move illegal funds through their own bank account.

Monte Carlo simulation is a technique that runs thousands of trials with randomly drawn inputs to show the range of possible outcomes and how likely each one is.

Moral hazard arises when protection from loss changes behaviour: a party covered against the downside takes chances, or less care, that it would avoid if it paid for failure itself.