BOARD OF DIRECTORS

Serve as independent governance and oversight of entity mission and key strategic, operational, and risk areas.

 

Typically experienced in functional and industry areas that add to mission, strategy, and operational achievement and long-term organizational resilience.

BOARD OF DIRECTORS

ROLES IN RISK OVERSIGHT SIMPLIFIED

RISK TRANSPARENCY Mission, Vision, Values, & Strategy

STRATEGY

Mission,

Vision, Values

  • Contribute to entity mission, vision, & values.

  • Provide input on entity strategic direction.

  • Serve as objective oversight of management approach to mission, vision, values, and strategy execution.

  • Focus upon entity level success and long-term resilience.

RISK TRANSPARENCY Risk & Opportunity Awareness

AWARENESS

Risk Management, Culture, Alignment

  • Encourage open, objective, and honest culture.

  • Support executive leadership identification, assessment, and management of key internal and external risks and opportunities impacting strategic and operational achievement.

  • Provide key input and direction on risk appetite and potential systemic risks.

RISK TRANSPARENCY Governance, Leadership, & Performance

PERFORMANCE

Governance, Measurement

  • Encourage and ensure open, objective, honest, law abiding culture.

  • Review and provide input on key strategic and performance initiatives & measures. 

  • Ensure first, second, and third lines of defense are providing a strong internal control system to increase assurance of success within risk appetite

RISK TRANSPARENCY Organizational Assurance, Value & Resilience
  • Ensure functioning culture, internal control, and enterprise-wide risk frameworks to achieve near-term performance and long-term organizational resilience.

ENTERPRISE VALUE

THE BOARD OF DIRECTORS ARE A KEY PIECE TO THE OVERALL ENTITY PUZZLE AND MISSION

THE BOARD OF DIRECTORS LEVERAGE COMPONENTS KEY TO THE SUCCESS OF THE FUNCTION AND ENTITY

 

BOARD OF DIRECTORS

RISK and DUE DILIGENCE SUB-CATEGORY CONSIDERATIONS

RISK CATEGORY CONSIDERATIONS

RISK CATEGORIES TO CONSIDER:

  • All key risk areas impacting mission, strategy & operational development & achievement

TOP RISK CONSIDERATIONS

TOP RISKS FOR BOARD OF DIRECTORS TO CONSIDER

RISKS COMMON TO MOST BOARDS

  • Organizational reputation, trust, and integrity

  • Compliance with laws, regulations, and expanding social expectations

  • Strategy development and execution

  • Performance achievement

  • Balancing short-term performance with long-term growth and organizational resilience

  • CEO succession planning

EXAMPLES OF CURRENT TOP RISKS FOR BOARDS*

  • Existing operations meeting performance expectations, competing against “born digital” firms

  • Succession challenges and ability to attract and retain top talent

  • Regulatory changes and regulatory scrutiny

  • Cyber threats

  • Resistance to change operations

  • Rapid speed of disruptive innovations and new technologies

  • Privacy/identity management and information security

  • Inability to utilize analytics and big data

  • Organization’s culture may not sufficiently encourage timely identification and escalation of risk issues

  • Sustaining customer loyalty and retention

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