What risk management techniques would have prevented Black's potential conflicts from becoming harmful?

A strong control environment constitutes the most pervasive means to deter fraud. An appropriate control environment includes a culture of ethical values such as integrity, honesty, fair-dealing, and competence; as well as a management philosophy and operating style that reflects those values, and the reinforcing oversight, attention and direction provided by a supportive board of directors. The awareness of company personnel, and internal controls that correspond to this culture should provide reasonable assurance that fraud will be prevented or detected.
Some elements of the control structure that might prevent or early detect conflicts of interest include legal, accounting, and internal audit departments, as well as an independent board of directors. The legal department, or office of the general counsel, typically plays a key role in reviewing disclosure documents for compliance with applicable laws and regulations. The internal audit function performs a supervisory function within the company to examine, analyze, and make recommendations on matters affecting the company's internal controls. The audit committee of the board of directors has a responsibility to the company's shareholders to oversee management's performance.