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A management risk committee
A couple of weeks ago, Jim DeLoach shared his views on effective [management] risk committees. I pretty much agree with what he had to say in NACD’s BoardTalk.
This, plus a question from a follower of this blog on the same topic, had me searching for the charter of the risk committee I established, with the strong support of the CEO, at Business Objects. Unfortunately, I couldn’t find it. But I can share some of the principles under which it operated.
The four members were all direct reports to the CEO and I served as staff and advisor. They included the executive vice presidents responsible for Product Development and Marketing (chair), plus the CFO and general counsel
The committee was responsible for oversight of management’s processes and policies around the management of risk. This included being evangelists for the consideration of ‘what might happen’ in all major decisions of the business.
We spent most of our time working to reach a consensus on the major risks and opportunities that might affect the company’s objectives. The members each represented a very different segment of our business operations and it took their collective insights to see the big picture.
But, the full executive committee would…
