Directors need to consider several categories of risk, particularly the normal ongoing business management risks, emerging risks and critical enterprise risks. Certain risks require directors to have sufficient information in advance to prepare them for discussions with management about the risks and how they are managed. These risks are the ones that threaten the company’s strategy and the viability of its business model.
In this issue of Board Perspectives: Risk Oversight, we focus on what we define as the top risks that can threaten a company’s strategy, business model or ongoing viability. These risks should be a significant focal point of the board of director’s risk oversight agenda.