Elevate Xchange Aug 3rd, VIRTUAL Board Risk Strategy
with Moderator George Crawford, CIO.CISO.Partner Catapult Services and Panelists:
Larry Quinlan, Former Global CIO Deloitte/Board Member ServiceNow among others, Herman Bulls, Board Vice Chair, JLL among others, and Brian Spanswick, CISO, Cohesity.
©Elevate Xchange June 2023 all rights reserved.
The Board Risk Strategy is a crucial element of Corporate Governance that enables an organization to proactively identify, assess, and mitigate risks. The strategy involves the development and implementation of processes and procedures for identifying and monitoring risks, establishing risk tolerance levels, and developing contingency plans. The board of directors is responsible for ensuring that the organization's risk management framework is aligned with its strategic goals, objectives, and values.
Effective board risk strategy involves a thorough understanding of the organization's risk landscape, including its internal and external risk factors. The board should ensure that risk management processes are integrated into the organization's decision-making processes, and that they are supported by adequate resources and tools. The strategy should also include regular reporting and communication to stakeholders to maintain transparency and accountability.
Board risk strategy is critical in ensuring an organization's long-term sustainability and resilience. It helps the board to identify emerging risks, evaluate their potential impact, and take proactive measures to mitigate them. By prioritizing risk management, the board can enhance stakeholder confidence and protect the organization's reputation, which is essential in today's highly competitive and interconnected business environment. In conclusion, board risk strategy is a fundamental aspect of corporate governance that should be given priority by every organization's board of directors to ensure its success and sustainability.
Identify and prioritize the organization's most significant risks, including emerging risks, and ensure that the risk management framework is aligned with the organization's strategic goals and values.
Develop and maintain a robust risk management process that involves regular assessment, monitoring, and reporting of risks to the board of directors.
Establish risk tolerance levels that are appropriate for the organization's risk appetite and communicate them effectively to stakeholders.
Ensure that the organization has adequate resources and tools to manage risks effectively, including appropriate insurance coverage and risk transfer mechanisms.
Integrate risk management into the organization's decision-making processes to ensure that risk considerations are taken into account when making strategic and operational decisions.
Implement a risk culture that encourages and supports risk-aware behavior across the organization, including effective communication and training programs.
Foster effective communication and collaboration between the board of directors, senior management, and other stakeholders to ensure that everyone understands their roles and responsibilities in managing risks.
Conduct regular stress testing and scenario analysis to assess the potential impact of significant risks on the organization.
Establish effective controls and mitigation strategies to manage risks, including early warning systems and contingency plans.
Review and evaluate the effectiveness of the risk management framework regularly and make necessary adjustments to ensure that it remains relevant and effective in managing the organization's risk.