Boards Are Reassessing Risk Management Practices

This month, Financial Executive Magazine highlights risk management survey results from a recent study by the National Association of Corporate Directors (NACD).  Not surprisingly, board members indicate they are not very satisfied with their respective company's risk management approach.  Here is what they said.

More than half of audit committee members polled in the NACD survey said they were only somewhat or not satisfied that their board has effective processes in place to oversee the company’s risk management activities. Risk management has been on the radar — if not a priority — for most companies and boards over the past several years. Yet many are asking whether “the ball is being moved forward,” and whether risk needs to be considered in a different way. Nearly 75 percent of the audit committee members surveyed said they are reassessing risk management and oversight processes as a result of the financial crisis. One of their biggest challenges, they said, is understanding the link between strategy and risk; and many are concerned that management may not have a holistic view of the company’s risk profile.

A true enterprise risk management program is required to address these challenges.  Wheelhouse Advisors can help.  To learn more, visit www.WheelhouseAdvisors.com.