Corporate boards ‘significantly overconfident’ when it comes to risks

Published: Wednesday, 16 October 2019 08:31

Board members have greater confidence in their organizations' ability to manage key risks than members of management actually do, according to a survey of board members, executive management, and chief audit executives released by The Institute of Internal Auditors (IIA).

The survey report, ‘OnRisk 2020: A Guide to Understanding, Aligning, and Optimizing Risk’, offers a comprehensive view of organizational risk from those who manage it. Among the report's key findings are:

"Acceptable misalignment on risk is a risk itself that's shortsighted and simply unacceptable," said IIA President and CEO Richard F. Chambers, CIA, QIAL, CGAP, CCSA, CRMA. "The burden is on management to provide the board with an accurate picture of risks that may negatively impact the organization as well as those that present opportunities. But board members also must seek out informed and objective assurance on the information they receive, and internal audit is uniquely positioned to provide that truly independent and enterprise-wide perspective."

Read the report (PDF).