Risk management by boards improving, says study.

• Author: Ladd, Scott
• Position: RISK MANAGEMENT - Report

Corporate boards are beginning to take greater "ownership" of the risk management of their companies, according to a new study by The Conference Board.

In its most recent installment of The Conference Board Director Notes series, the organization found that those executives surveyed say they are becoming more directly involved in understanding risks facing their companies and more diligent about assigning risk oversight to the proper committee.

Board members say they are also doing a better job of benchmarking potential risks, the report disclosed.

As two additional areas of improvement generally, they cite more consistent contact and communication with the management team in order to forestall future risk-related issues and greater attention to follow-up on key risk discussions.

The report, Director Insights on Emerging Risk Oversight Practices, was produced in collaboration with McKinsey & Co. and the Global Association of Risk Professionals and is based on a series of interviews with corporate directors on emerging board practices in risk oversight.

The pool of interview participants included 20 members of U.S. public company boards that represent a variety of business sectors, including manufacturing, high tech, real estate, food services, retail, telecommunications, air travel, energy, health care and...