New findings on the board’s role in effective risk management
- Published: Friday, 04 October 2019 08:39
The Shared Assessments Program has published ‘The Board’s Role in Realizing Effective Risk Management’ – a new set of findings and recommendations developed with C-level executives and risk experts from a number of organizations.
The briefing paper provides boards of directors and C-level executives with new findings on the role of and increasingly crucial importance of Board oversight; and specific high-profile case study examples of the opportunity for the Board to play a role in robust risk monitoring to achieve organizational goals and preserve brand reputation, and the real-world consequences of failing to do so.
The paper also provides specific actionable recommendations for effectively engaging the Board in strategic risk-related processes to protect business continuity, safeguard revenue streams and assure positive organizational reputation.
Guidance in the paper includes:
- Raising awareness of the Board’s role in risk management processes and the advantages of appointing a designated risk-aware member.
- Advocating for the appointment of and understanding the responsibilities of a Chief Risk Officer.
- Understanding recent Federal rulings and their potential implications for organizations.
- Gaining the potential benefits of board-directed third party assessments
- Following eight specific actions that Boards can take to ensure effective risk management oversight, such as: approving enterprise risk monitoring processes and codifying the organization’s risk appetite and risk management framework; and maintaining direct communications channels with specific key functions in risk-related matters – including who should have unimpeded Board access and why.
- Adopting the five key steps Boards should take to help their organizations be more responsive to real-time risk developments and maintain a higher level of resiliency.
The report was developed by experts with The Santa Fe Group, The Shared Assessments Program and subject matter experts from: Alvarez & Marsal Dispute Analysis & Forensics, LLC; Annie Searle & Associates; CopyTalk, LLC; Early Warning Services, LLC; Lynx Technology Partners, Inc.; MUFG Union Bank, N.A. (formerly Bank of Tokyo); Neo Group; NormShield, Inc.; Secure Digital Solutions, Inc.; Security Diligence, LLC; Solem Risk Partners, LLC; and Synovus Financial Corporation.
The report is available for download at: https://sharedassessments.org/board-risk-management/