October 10, 2011

Should the Board Have a Separate Risk Committee?

Board Perspectives: Risk Oversight, Issue 24

In certain circumstances, the Dodd-Frank legislation in the United States requires a separate risk committee comprised of independent directors for boards of financial institutions. Over time, it is possible we could see some “trickle-down effect” of this approach on the board risk oversight of non-financial services companies. With this perspective as a context, the question is: should the board of directors establish a separate risk committee of the board?