Ongoing global economic and political uncertainty continue to put a spotlight on whether companies are prepared to both seize opportunities that emerge and protect themselves against threats. For their part, boards are reflecting on whether they have the right governance structures to oversee strategic risks like these effectively. Some are examining whether it makes sense to establish a risk committee—an independent group of directors responsible for overseeing risk management policies and framework. Barring a regulatory requirement, deciding whether to have a separate risk committee is not an easy decision.
Questions for the board to consider: