When Do Companies Need a Board-Level Risk Management Committee?
Risk management is nothing new. But the global financial crisis and corporate failures in recent years have put risk management in the spotlight. Who is ultimately responsible for it? Responsibility for risk management should start in the boardroom...
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| Format: | Brief |
| Language: | English en_US |
| Published: |
International Finance Corporation, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/01/17629963/companies-need-board-level-risk-management-committee http://hdl.handle.net/10986/17018 |
| Summary: | Risk management is nothing new. But the
global financial crisis and corporate failures in recent
years have put risk management in the spotlight. Who is
ultimately responsible for it? Responsibility for risk
management should start in the boardroom, as the board is
ultimately responsible for the organization's decision
making, business performance, and value creation, all of
which are associated with risk. The chief executive officer,
who is accountable to the board, has the responsibility to
ensure proper execution of the risk-management strategy and
policies laid down by the board. The board governs while
management manages. The board's risk management role
should therefore be the governance of risk overseeing,
directing, and setting policies and monitoring performance. |
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