Board members weigh in on effective risk management
Corporate fundamentals are crucial: culture, talent and strategy
EY held a series of roundtable sessions with seasoned board members from across Canada to get their perspectives on today’s risk management practices. Our goal was to gauge their views on the shifting nature, extent and quality of risk management discussions at the board level, and to leverage their ideas on leading practices that will contribute to a more effective risk management program in a changing environment.
Our discussions confirmed our perspective that, in order for boards to go beyond simply protecting the business and actually enabling it through risk management, they must take a broader view of risk, adopt more leading practices and ask the right questions. However, we also noticed that, regardless of the activity in question, the dialogue always reverted back to three fundamental elements: culture, talent and strategy. While a robust risk management program can certainly provide valuable structure and information, the basics are fundamental. Risk management is much more effective if it’s based on a solid foundation of a communicative, risk-aware culture, an engaged, diverse group of employees and leaders, and a well-thought-out strategy.