The Next Frontier for Boards: Oversight of Risk Culture
Director Notes by the Conference Board, June 2015.
12 Pages Posted: 3 Jul 2015
Date Written: June 23, 2015
Weak “risk culture” has been diagnosed as the root cause of many large and, in the words of the Securities and Exchange Commission Chair Mary Jo White, “egregious” corporate governance failures. The new challenge that corporate directors face is how to diagnose and oversee the company’s risk culture and what actions to take if it is found to be deficient. This paper provides board members an overview of these new oversight expectations, outlines potential handicaps they may encounter, and offers suggestions for overseeing their company’s risk culture.
Keywords: Risk Culture, Corporate Governance, Board Oversight, Risk Management
JEL Classification: G34, D80
Suggested Citation: Suggested Citation