The oversight of financial risk is a well-established responsibility of the board. But as recent crises faced by companies such as Toyota and BP show, boards today are being held accountable for an ever-more diverse range of risks that can include safety, environmental, technological, regulatory and reputational risks, among others.
To gain an insider’s perspective on the evolving role of the board in risk oversight, Spencer Stuart recently conducted several confidential interviews with the audit and risk committee chairs of leading multinational corporations in the industrial, life sciences, banking and financial services sectors headquartered in Europe and the United States. These executives shared their insights on the board’s role in risk oversight, the skills the board requires to fulfill that role effectively, the pros and cons of creating a separate risk committee, and the steps the board should take to enhance risk management throughout the organization. We also heard their views on the role of the chief risk officer and its relationship with the board of directors.
See full Press Release.
Posts
