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Poole College of Management
Enterprise Risk Management Initiative

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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.

Sep 1, 2008

Managing Risks for Comparative Advantage: Five Steps to Better Risk Management

This articles highlights a five-step process to help companies make changes to better their approach to risk management in response to the developments occurring in the corporate approach to risk management: 1. Identify and understand your major risks; 2. Decide which risks are natural; 3. Determine your capacity and appetite for risk; 4. Embed risk in all decisions and processes; and 5. Align governance and organization around risk.

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.

May 1, 2008

ERM: The Importance of Senior Management Buy-In and Leadership

The Midwest Audit Committee Network met to discuss effective ways for boards and audit committees to oversee enterprise-wide risk management. The network is a group of audit committee chairs drawn from leading Midwest companies of varying size. This article captures the overall tone of the comments and outlines the conclusions drawn by the committee. While specific quotes are highlighted to emphasize a point, the speaker’s identity is kept confidential.

Sep 1, 2005

Best Practices for Structuring ERM Within the Organization

In order for the risk management division to function properly, it is essential to structure it properly within the firm. The risk management division should be placed in high stature within the firm and should report directly to the CEO. Risk managers should have a deep understanding of the company's business in order to effectively communicate with risk takers in the firm. Structuring the risk management division properly will ensure a more holistic view of risk within the organization.

Sep 1, 2005

CROs (Chief Risk Officer) Challenged by IT Risks

The white paper focuses on the increasing dependency companies have on IT processes and the new challenges placed on CROs. Senior executives at various industries were asked to provide insight on digital risks and the role CROs play in tackling such risks.

May 1, 2005

Role of the Chief Risk Officer

The Chief Risk Officer (CRO) is rapidly becoming one of the most crucial members of the management team. CROs are involved with managing many types of risks faced by a business including regulatory risks, product development risks, and strategic risks.