Board Members Agree - ERM is Top Priority

As we move into the fourth quarter of a year filled with major corporate calamities, a recent survey of over 1,000 public company board members points to the need for stronger enterprise risk management.  Today, Corporate Board Member magazine released the results of their 7th annual survey entitled "What Board Members Think".  This survey, conducted by PricewaterhouseCoopers, highlights the board members' belief that shareholders deserve greater assurance that risks will be effectively managed.  The magazine reported the following.

When asked if they felt their board members could adequately meet the responsibility of monitoring the company's multitude of risks, 81 percent of directors felt their board was capable; yet only 50 percent said their board was effective or very effective at monitoring a risk management plan to mitigate corporate exposures.

Based on this survey, board members seem to understand their role and also, more importantly, seem willing to address the challenge of holding management accountable for building and maintaining strong enterprise risk management programs.  Do you agree with these results?  Share your thoughts below.