Enterprise Risk Oversight
John Kelly 270004J7VQ firstname.lastname@example.org | | 0 Comments | 167 Visits
COSO has released a new paper titled Effective Enterprise Risk Oversight: The Role of the Board of Directors which is aimed at helping boards of directors strengthen their oversight of enterprise risks. In particular, it points to four specific areas discussed in COSO’s 2004 ERM framework that contribute to board risk oversight:
The last area is one that cruise line leader Carnival Corporation has taken to heart. In a recent interview with Erik Krell from Business Finance, Carnival’s vice president and chief audit executive Richard Brilliant explained how his team “has done a phenomenal job in developing a framework that enables us to provide risk reporting to the board that they never had before. The reporting not only allows directors to understand how risks are mitigated, but also provides ongoing risk monitoring as well as tracking of action plans for improvements.”
Brilliant says that presenting new, precise information to the board about the company’s overall ability to manage governance, risk, and compliance issues has really improved the dialogue about how the company could better respond to risk in the business. Further, Brilliant notes, “the board can also more clearly see over time how things have improved.”
To read the full interview click here.