NACD Library

BRC Risk Oversight: Board Lessons for Turbulent Times

BRC Risk Oversight: Board Lessons for Turbulent Times Cover
Series: Blue Ribbon Commission Reports
Product Code: BRC-009
Publication Date: 2006
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Resource Description:

The Report of the NACD Blue Ribbon Commission on Risk Oversight: Board Lessons for Turbulent Times addresses key issues for directors looking to be a permanent and active part of the risk oversight solution. 

These key issues include:  

  • Why boards need to be involved in risk oversight, especially today.
  • How a solid foundation of best practices can help directors oversee risk management.
  • How management and the board can detect specific material risks.
  • How directors can help companies ddress specific risks and prepare for crisis.
  • What directors can do if a potential risk turns into an actual crisis.       

The report also includes these Commission recommendations, among others:

  • Directors need to understand the specific risks facing the organization they serve, as well as make sure the board and management have processes in place to address these risks.
  • A board, based on the best practices of corporate governance, will have the best available tools to effectively perform risk oversight.
  • The most effective oversight of risk management includes the board’s constant awareness of all potential risks as it pursues its governance duties.
  • A highly effective board must have crisis management plans in place for possible risk related scenarios as well as a specific team ready to act upon these plans in moments of crisis.
  • In times of crisis, the board must remain vigilant and informed, while carrying out crisis related procedures.