ABSTRACT
How do effective directors ensure they are able to effectively oversee risk management and controls?
Based on a framework of global corporate governance best practice, which can be used in all organisations anywhere in the world, this chapter of Questions To Ask (QTA) in the boardroom gives a high-level but succinct introduction to risk oversight, management, and controls.
All directors should ensure that they are able to properly understand the risk management of the organisation and that they receive risk reports that make it possible for them to consider the overall risk appetite of the organisation. Risks and opportunities go hand in hand and there needs to be a balance between them to ensure the ongoing viability of the organisation. For these reasons not all risks should be avoided. It is necessary to take managed risks and accept some and avoid others. The board also needs to ensure that sufficient internal controls are in place.
The chapter’s introduction leads into outlining the key Questions To Ask in the boardroom, giving the reader further insight into how to initiate discussions about the practical details requiring the attention of the board.
