Enhancing Board Identification and Oversight of Disruptive Risks

In brief: Many disruptive risks are foreseeable with appropriate coordination between boards and management. Different kinds of risks could prove disruptive, and sometimes companies are monitoring for some but not all of them. Boards rely on information from management to help identify and provide oversight of disruptive or emerging risks that could result in a significant impact on the company’s strategy, operations, financial performance, or reputation. This tool outlines considerations for determining whether the board of directors is receiving sufficient information to identify and provide oversight of disruptive risks. Directors can use this material when considering possible changes or enhancements to their company’s compliance program and board reporting procedures.

Most relevant audiences: board chairs, lead independent directors, CEOs, audit and risk committee members, chief risk officers, and heads of internal audit