Report of the NACD Blue Ribbon Commission on Risk Oversight
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.