Answers to the questions boards and executive teams ask most about enterprise risk management and working with Directors Global.
What is enterprise risk management (ERM) for boards?
Enterprise risk management is a structured, organization-wide approach to identifying, assessing, and managing the principal risks that could affect an organization’s objectives. For boards, ERM means having formal practices to oversee how management identifies and controls key business risks, referencing recognized standards such as ISO 31000:2018 and COSO, so directors can meet their fiduciary duty of risk oversight.
How should a board oversee risk?
Effective board risk oversight combines a clear mandate (often through a risk or audit committee), a defined risk appetite, regular reporting from management on the principal risks, and periodic deep dives into specific risk areas. The board’s role is oversight, not management: ensuring the right processes exist, are resourced, and are actually used in major decisions.
What does a board risk committee do?
A board risk committee monitors the organization’s principal risks on the board’s behalf: reviewing the risk register, challenging management’s risk assessments, overseeing the ERM program’s design and resourcing, and reporting to the full board. It gives risk oversight the sustained attention a full board agenda rarely allows.
What is the Board Risk Readiness Assessment?
It is Directors Global’s packaged diagnostic: we benchmark your organization’s risk governance against the framework published in our Wiley ERM handbook chapters and board governance best practices, then deliver a written report and a debrief session with your board or executive team. It is a bounded first step with a tangible deliverable.
Where does Directors Global work?
Directors Global Risk Consulting Inc. is based in Toronto, Ontario and works with boards and executive teams across Ontario, throughout Canada, and internationally. Engagements are delivered on site or remotely depending on the board’s needs.
Have a question that isn’t answered here? Get in touch or request a Board Risk Readiness Assessment.