Skip to main content
Poole College of Management
Enterprise Risk Management Initiative

Filtered Results

Mar 1, 2009

Key Areas of Concern in Corporate Governance

Strong corporate governance is essential for boards as they are positioned to lead the way in implementing measures that contribute to economic growth and sustainability. There are four areas of corporate governance the National Association of Corporate Directors (NACD) has identified as being the most important and of immediate concern: risk oversight, corporate strategy, executive compensation, and transparency. Within each area of concern, the NACD provides recommendations from their Key Agreed Principles to Strengthen Corporate Governance for U.S. Publicly Traded Companies document as well as addresses future challenges boards will face in improving governance practices in each area.

Dec 1, 2008

Aligning Risk Management and Executive Compensation

Boards of directors are charged with corporate governance tasks that include setting executive compensation and developing the corporation's strategic agenda in light of its risk tolerance. Using short-term performance metrics, like stock price or earnings per share, to determine executive compensation may encourage executives to make decisions that are not aligned with the corporation's strategic plan or overall risk appetite.

Jun 1, 2008

Board-Level Risk Committees

Traditionally, senior risk executives have managed risk at the operational level of organizations. Boards have had general oversight responsibilities for risk, with audit or finance committees taking on more specific risk responsibilities. Now, with the heavy workloads of audit and finance committees and a trend towards implementing enterprise risk management (ERM) processes, many organizations are finding it beneficial to form separate board-level risk management committees. The risk content of an organization is often still addressed at the board level across many committees, while risk process is the focus of the separate risk committee.

Sep 1, 2004

COSO’s “Enterprise Risk Management – Integrated Framework”

"This Enterprise Risk Management – Integrated Framework expands on internal control, providing a more robust and extensive focus on the broader subject of enterprise risk management. While it is not intended to and does not replace the internal control framework, but rather incorporates the internal control framework within it, companies may decide to look to this enterprise risk management framework both to satisfy their internal control needs and to move toward a fuller risk management process. Among the most critical challenges for managements is determining how much risk the entity is prepared to and does accept as it strives to create value. This report will better enable them to meet this challenge."