The Role of Corporate Boards in Enterprise Risk Management
Key Takeaways from NC State Poole College of Management's Bonnie Hancock
In this expert conversation, Bonnie Hancock, professor of practice at NC State’s Poole College of Management and a veteran board member, sits down with the ERM Initiative’s Don Pagach to unpack the evolving role of corporate boards in enterprise risk oversight.
Drawing on her real-world boardroom experience, Hancock shares how boards can move from passive risk reviewers to proactive strategic partners—helping organizations not only identify but plan for their most critical enterprise risks.
Key Insights on Strengthening Board Engagement in ERM
In this conversation, Bonnie shares practical guidance for how corporate boards can take a more strategic, forward-looking role in overseeing enterprise risk.
💡Bonnie’s Top Tip: Embed the Risk Officer in the Strategy Conversation
The most effective ERM-board relationships are those where the chief risk officer is embedded in senior leadership and board conversations—ensuring risk is considered not just reactively, but proactively.
Additional Insights
Board Oversight Has Two Dimensions: Process and Substance
Boards must ensure internal processes exist for managing risk across all levels—from compliance to strategic initiatives. But they must also understand and monitor the organization’s top enterprise-wide risks and how those risks could threaten long-term value.
Effective Boards Are Forward-Looking
Too often, board conversations get stuck in the rearview mirror. Hancock encourages boards to embrace scenario planning and regularly ask, “What assumptions are we making—and how could they change?”
Risk and Strategy Must Be Integrated
Risk conversations shouldn’t be separate from strategy. Hancock emphasizes that risk leaders must be present during strategic planning sessions and that the board should schedule deep dives into top risks throughout the year—not just once during the annual report.
Boards Need Clear, Prioritized Risk Communication
More information isn’t better—focus is key. Hancock supports using dashboards with clear indicators (e.g., red/yellow/green, directional arrows) paired with narrative context and forward-looking risk trends.
Related Resources
To help your board better understand and engage in the ERM process, explore these actionable tools and insights:
- Communicating Risk Insights to Boards of Directors: Discover best practices for presenting risk data clearly and concisely to the board.
- Reporting Risk Information to Boards of Directors: Learn how to structure ongoing board-level risk reporting that is strategic and digestible.
- Helping Boards Make Better Decisions: Gain insight into how boards can integrate ERM into governance to enhance decision-making.
- ERM TOOL: Creating a Risk Profile Summary
Use this tool to distill complex risk information into a board-ready snapshot.
Explore More Risk Management Tools & Templates
Looking to build out your ERM toolkit?
View our Tools and Templates in the ERM Resource Center to access a full library of customizable templates, diagnostics, and frameworks to strengthen your program.
