In the wake of the global financial crisis, boards are taking a much more active role in risk oversight. In this series of posts, I’m discussing the three key levers that boards can use in their risk oversight. In this post, I’m covering risk governance, which establishes the oversight roles and decision points for the board and board committees.
In the wake of the global financial crisis, boards are taking a much more active role in risk oversight. They are reexamining governance structure and roles, risk policies and limits, and assurance and reporting processes. James Lam, author of Enterprise Risk Management: From Incentives to Controls, says there are three key levers that boards should adopt in their risk oversight.
Measuring and managing operational risks is transitioning from intuitive art to science. But introducing quantification to an area that involves qualitative reasoning and subjectivity can be a little daunting. Take a look at Gary Cokins’ risk map – visualize risks on a single page.
The Board’s responsibility is to understand the organization’s data gathering process, and then ask the right questions about the results. Here are some questions to get you started on the right path.
Since the global financial crisis beginning in 2008, the role of risk management and the risk manager has changed dramatically. But, has the emphasis on risk management begun to lessen as firms seek to recoup profits in this era of extremely low interest rates?
Financial institutions worldwide have begun to realize that data isn’t an operational issue reserved for the IT department; instead it should be considered an asset with fundamental strategic importance. Find out why data has risen to become a board-level issue.
An Economist Intelligence Unit survey found a renewed focus among financial services execs on growth and profitability, perhaps misplaced as many claim that risk management changes made since the crisis are inadequate to handle future volatility and complexity. Is this a slide backward?
The development and implementation of an ERM program is a multiyear effort requiring significant commitment from the board and senior management. While the practice of ERM has evolved and matured significantly over the past seven years, critical challenges still need to be addressed. Read James Lam’s latest article, published in The RMA Journal, which puts forth seven preditions for the future of risk management.
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