Risk management needs to be the way that a firm does business. A successful business both takes risk and receives the appropriate reward for the risks that it is taking. You would expect this to be a key concern of the Board, yet in many firms the boards are not really actively engaged in the process.
Risk management looks both at the present and the future. The Board, in considering the strategy and goals of the firm, should do so in the context of risk and reward. They should then build a risk management framework that seeks to minimize the likelihood that the goals and missions will not be met.
This needs the Board to be conversant with the principles and objectives of risk management and for them to be able to synthesize ...
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