“Risk oversight” describes the board of directors' role in the risk management process. The risk oversight process enables the board and management to develop a mutual understanding regarding the risks the company faces over time as it executes its business model for creating enterprise value. A board has the flexibility to organize itself in a manner that makes sense in view of its company’s size, structure, complexity and risk profile, making risk oversight a high priority for today’s boards of directors.
This issue of Board Perspectives: Risk Oversight
outlines questions for board members to consider as they seek to clarify their risk oversight responsibilities.