Here is a pretty good article by Dale E. Jones, vice chairman and partner with Heidrick & Struggles, published at boardmember.com in which he writes about a report by the National Association of Corporate Directors.
Jones notes that the report “identified four critical areas that will warrant greater attention by directors in the coming days; two of these were risk oversight and transparency. I believe the placement of risk oversight and transparency as the first and second critical areas is intentional and appropriate.”
Some other highlights:
Most companies adequately address known risks, but it is the unknown risks that cause the most problems for companies. Some unknown risks can and should be detected and mitigated.
Overseeing known risk and revealing previously unknown risk is a critical area that will demand dedicated board focus to both ensure shareholder value and public trust.
I like how Jones points out how placing a high value on enterprise risk corporate transparency ensures organizations do not lose the trust of their stakeholders.