Actions for the risk intelligent board.

Here are several additional steps you and your board can take along the path to Risk Intelligence:

1. Broaden your view of risk. Don't limit your deliberations to fraud prevention, inventory protection, IT security and the like. These are all important items, to be sure, but they are more related to "survive" than to "thrive." Embrace the concept of Risk Intelligence to attain a proper balance between value protection and value creation. Read our foundational whitepaper on the topic: "The Risk Intelligent Enterprise™: ERM Done Right (1)."

2. Take a hard look at the board. Evaluate the risk governance structure within the board and its committees. Determine to what extent risk oversight is occurring. Assess whether the board's approach is practical and responsive to the challenge. Bring in internal audit or an outside party to assist with the assessment.

3. Don't underestimate the challenge. Your work as a board member does not begin and end with the risk report. Rather, it requires a commitment of your time and intellect to understand the issues and activities that underlie the report. Your board should engage in meaningful dialogue around risk overstatement and understatement--that is, consider if your company is overly risk averse--and at the same time, determine if you have sufficient coverage in the areas of risk exposure.

4. Think about your risk framework. Don't address risk in an ad hoc manner. Make sure there is an appropriate framework over which the risk governance activities occur. Tools that may prove helpful are the COSO ERM framework (2) and Deloitte's Risk Intelligence Framework.

5. Line up with management. Work in synch, not at odds. Make sure that management is aligned and coordinated with the board's point of view on risk. Require of management the legwork necessary to support the board's desire for the highest and most practical level of risk governance achievable (3).

6. Assess risk performance. Assure there are periodic, independent assessments to evaluate the effectiveness of the full risk management program. It is the board's duty to determine...