Should the Board Have a Separate Risk Committee? Board Perspectives: Risk Oversight, issue 72 (via Protiviti)
October 12, 2015
Boards of Directors have various subcommittees, but few companies have a Risk Committee. The latest edition of Protiviti’s Board Perspectives: Risk Oversight newsletter helps board members to consider the pros and cons of implementing a Risk Committee at their organizations. Below is a synopsis:
A separate risk committee of the board of directors is not a panacea, nor is it a one-size-fits-all solution. This article discusses the circumstances in which it may be appropriate to have a separate risk committee, what value it contributes to the board’s overall risk oversight responsibilities, how it should be organized, and other related topics.
I found this article to be insightful as it provides some key considerations for board member to consider when determining if a risk committee is appropriate for their organization. Does your Board of Directors have a risk committee? If so, does it’s objectives align with these considerations?
Download your copy of Board Perspectives: Risk Oversight to learn more