Why Boards Must Be Active In Managing Risk
Episode Description
📂 Management 🏷️ Research
Brief Summary
Board oversight of risk management impacts company performance, emphasizing the need for full board involvement and better communication with management.
Key points
- The Importance of Board Oversight. Does board oversight of risk management truly impact company performance?
- Who Should Manage Risk?. The debate on whether risk management should be handled by the entire board or a committee.
- Window Dressing in Risk Management. Are companies just creating risk committees for appearances?
- Understanding Risk Appetite. Risk management should align with a company's risk appetite, not eliminate risk.
- Evaluating Board Performance. Companies that evaluate board performance see better risk management practices.
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Episode highlights
- The Importance of Board OversightDoes board oversight of risk management truly impact company performance?“Does it really make a difference how board does risk oversight?”0:33Sep 23, 2015
- Who Should Manage Risk?The debate on whether risk management should be handled by the entire board or a committee.“It really matters who is responsible on the board for risk management.”0:51Sep 23, 2015
- Window Dressing in Risk ManagementAre companies just creating risk committees for appearances?“Boards are putting this in, but it really does not look like it makes a difference.”1:51Sep 23, 2015
- Understanding Risk AppetiteRisk management should align with a company's risk appetite, not eliminate risk.“Risk management is not about getting rid of risk. Do it within your risk appetite.”2:36Sep 23, 2015
- Evaluating Board PerformanceCompanies that evaluate board performance see better risk management practices.“You really have to set in your charter having the whole board responsible.”3:10Sep 23, 2015
Tension
45/ 100Some tension
