This week, we highlight Matteo Tonello’s discussion on corporate boards and their oversight of company risk in the recent publication of The Conference Board Director Notes. This post was published in the Harvard Law School Forum on Corporate Governance and Financial Regulations.
In his post, Tonello discusses the many challenges corporate boards face in managing company risk, and he provides the following recommendations to help corporate boards enhance their risk governance:
- Get educated on the new board oversight of risk culture expectations
- Complete a risk culture gap assessment
- Consider a Board & C-Suite Driven/Objective-Centric approach to ERM and Internal Audit
- Regulators should consider safe harbor provisions in the area of board risk oversight
- Hold the CEO accountable for building and maintaining effective risk appetite frameworks and providing the board with periodic consolidated reports on the company’s residual risk status.