Your Board Can Be Your Best Risk Management Defense
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Your Board Can Be Your Best Risk Management Defense

January 10, 2023 | Report

Seven Pitfalls of Business Risk Management, Part 4 of 4

This multipart series is intended to help executives better mitigate their risks and execute their strategies; it highlights core topics where errors can create operational and franchise risks for even the best-run firms. 

The seventh pitfall arises when boards inadvertently amplify or overlook risks. Novice board members who lack risk management experience can themselves be a source of risk for even the best-run firms. Corporations should appoint battle-hardened individuals to their boards, especially those who have seen market and industry upheaval and have thrived amid crises. This is one of the best defenses for companies facing escalating risks. Hiring directors with both business cycle exposure and risk management skill sets creates a strong foundation for a company. 

AUTHORS

Hollis W.Hart

President (Retired), International Finance Management
Citi
Trustee, CED; Senior Fellow, ESF Center
The Conference Board

Dana M.Peterson

Chief Economist and Leader, Economy, Strategy & Finance Center
The Conference Board


7 Pitfalls of Business Risk Management: Part 1 of 4

Deploying Proactivity, Monitoring, and Vigilance

7 Pitfalls of Business Risk Management: Part 2 of 4

Cash Is King in an Illiquid and Capital-Opaque World

7 Pitfalls of Business Risk Management: Part 3 of 4

From Outsourcing Risk Management to DIY Threat Monitoring and Robustness

7 Pitfalls of Business Risk Management: Part 4 of 4

Your Board Can Be Your Best Risk Management Defense

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