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Risk Management: The Quintessential Side Pocket

By Mauro da Cunha

09/15/2025

Directorship Magazine Risk Oversight Member-Only

Effective risk management is crucial for all companies, yet it often exists in a "side pocket" that is separate from core decision-making. This article highlights the disconnect between public risk disclosures and internal realities, and emphasizes the need for boards to actively own risk parameters.

Use these considerations to integrate risk analysis into strategic decisions to ensure enterprise risk management systems are not merely theoretical but impactful. By fostering transparency and direct engagement, directors can strengthen risk oversight and navigate a rapidly evolving risk landscape.

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Mauro da Cunha

 

Mauro R. da Cunha, NACD.DC®, has served as an independent director for more than 20 years, He currently is a director on the boards of Hypera Pharma, Klabin, and Tupy. He is also the founder of Engage.MC, an advisory firm focused on corporate governance, strategy, and stewardship.