A few months ago, Jim DeLoach wrote “Six Principles for Improving Board Risk Reporting.” Having worked together over many years, Jim and I are colleagues and friends, and we continue to stay in touch and share experiences. As a leading expert on risk management, his words are worth noting. Here I briefly summarize his six principles, and then address what also is of absolutely critical importance that requires corporate boards’ close attention.
Jim puts forth the following interrelated “board risk reporting principles” that focus directors on significant risks, enabling them to bring to bear their knowledge and expertise in ways that add and preserve enterprise value:
