After the financial crisis, most big financial services firms added risk committees to the board to escalate the oversight of risk management. Now companies beyond Wall Street are warming up to the idea.
Companies have traditionally housed risk oversight in the audit committee, but as new regulations have piled on more financial reporting responsibilities, “audit committees are becoming overwhelmed,” says Bailey Jordan, who leads Grant Thornton's governance, risk, and compliance practice in its Southeast region. In the current regulatory environment, they may no longer have the time, resources, or expertise necessary to assess and manage the extensive range of business and operational risks that companies face.
In fact, the Dodd-Frank Act requires publicly traded banks with more than $10 billion in assets to establish an independent risk committee.... To get the full story, subscribe now.
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