paper, a breakdown in corporate culture at the most senior level rendered it largely ineffective. An open and positive risk culture at the board level can encourage the organization as a whole to pay closer attention to risk mitigation and prevention. Practical Steps to Improve the Board’s Risk Oversight Function Building a resilient ERM oversight framework within the corporate governance apparatus is not a precise science; rather, it is highly dependent on the circumstances and industry of each company, among other factors. With that said, boards can adopt measures to facilitate robust oversight of ERM so that directors satisfy their obligations under Canadian law and the expectations of key stakeholders (see Figure 2-3).
FIGURE 2-3: P ractical Measures to Enhance Risk Management Structures
Define the Issuer’s Risk Appetite and Tolerance
Seek Out and Incorporate External Advice
Know the Issuer’s Top Risks
Steanline Risk-Related Disclosure
Keep Track of Risk Responsibilities
Risk Oversight
Prepare and Maintain Accurate and Complete Records
Actively Monitor Operations
Consider the Board's Risk Oversight Competency
Recognize that Certain Oprations May Be Subject to Heightened Risk
Continually Evaluate Oversight Controls
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Governance Insights 2020
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