No going through the motions on risk strategy.

Author:Girgenti, Richard
Position:THOUGHT LEADERSHIP
 
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From The New Era of Regulatory Enforcement by Richard H. Girgenti and Timothy P. Hedley. Copyright [c] 2016 by the authors. Published by McGraw-Hill Education (www. mhprofessio nal.com).

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Board members have individual fiduciary obligations for the organizations they serve and are the primary stakeholders of the organization's compliance risk management efforts. To sustain the organization's culture for ethics and integrity, the board provides the oversight to ensure that management sets the core values and expectations for the organization and defines those behaviors that are consistent with the entity's values and expectations.

The board is responsible for helping to (1) set the organization's risk appetite, (2) validate management's risk strategy, (3) evaluate strategic risks, and (4) provide checks and balances on management's decisions. The board's role is vitally important because it helps secure organization-wide support for management's compliance...

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