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