In recent years, much has been learned about the importance of integrating risk into strategy-setting. This integration theme is vital because if it is ignored, risk becomes an afterthought to strategy and an appendage to performance management. Aligning governance, risk management and internal control processes toward striking the appropriate balance is crucial.
In this issue, we share 10 lessons for the board to keep in mind when integrating risk into the process of formulating and executing strategy. Every organization and industry is different, so there is no one-size-fits-all approach in terms of applying these lessons. However, they provide insights to executive management responsible for an organization’s strategic thinking and execution processes and to directors when providing strategic and risk oversight.