NACD Advisory Council on Risk Oversight: The Board’s Role in the Oversight of Risk Culture

In brief: The NACD Risk Oversight Advisory Council convened in April 2016 to discuss the board’s role in the oversight of risk culture. The meeting, cohosted by PwC and Sidley Austin, highlighted a number of takeaways for directors:

• Prudent risk-taking is critical to the execution of strategy.
• Transparency and resilience are indicators of a positive risk culture.
• Two important levers directors can use to influence risk culture are CEO succession and the board’s own processes.

This resource can help your board:

• Shape the company’s risk culture to support the execution of strategy.
• Encourage an open dialogue with management to identify future risks.
• Promote a positive risk culture through CEO succession planning and modifying board processes.

Most relevant audiences: risk committee members, audit committee members, general counsel