Enterprise risk management: The board's role in corporate governance
When it comes to achieving sustainability and growth in today's environment, enterprise risk management (ERM) is widely seen as a necessity, not an option, for companies of all sizes and structures.
Yet, according to the National Association of Corporate Directors' (NACD) 2011 Public Company Governance Survey, only half of companies surveyed have operational ERM programs in place.
While management is responsible for owning the processes related to risk, boards play a vital role in overseeing companies' everyday practices and procedures.
In this NACD BoardVision episode, John Brackett, RSM partner and enterprise risk management leader, discusses the issues and trends board members need to keep in mind as they execute their risk oversight responsibilities, including:
- Three areas in which a director's personal or professional experiences are particularly invaluable
- The emergence of risk committees and chief risk officers
- Key strategies boards should consider to optimize their involvement in risk oversight