Can we talk?

• Position: Brief article

One way the board can get involved is quite simple--talk it up. Merely putting risk on the agenda for discussion starts a process that will spur creative thinking and generate illuminating discourse. Whether the initial conversation takes place at a committee level, at the full board level, or both is not as important as getting the discussion started. The topic of risk should be placed on the full board meeting agenda on a regular basis, perhaps several times per year. And it will play an important role in board strategy retreats. (Obviously, risk will show up with greater frequency on the committee agendas.)

By broaching the risk discussion at the board level, one pervasive problem is immediately confronted--the tendency for risk management activities to take place in "silos." Most companies spread risk management across the organization. Treasury manages credit risk; IT oversees technology and information risk; facilities handles real...