In the wake of the financial crisis, management must understand the sea change in governance in order to be responsive to audit committee needs.
Board members have taken a greater interest in their company’s risk management programs, trying to understand the top risks facing the organization and their risk mitigation plans. But one area of the risk management program that has not been a focus until now is a company’s ‘risk culture’, a critical element of risk management efforts and an area that board members should better understand. This excerpt from Directorship discusses that aspect.