Following the global financial crisis, risk oversight became an imperative for boards of directors of public companies, particularly in the US. Boards of listed companies across industries have since formulated their respective approaches to risk oversight and organized themselves accordingly.
While risk oversight has always been an important part of the board’s agenda, the disruptive financial crisis taught everyone a lesson about just how important it is. This issue of Board Perspectives: Risk Oversight, revisits 10 timeless principles that boards can use to evaluate their risk oversight process as it stands today. Directors should use these 10 principles to assess their board’s risk oversight process to ascertain whether the process needs redirection.