Risk oversight should not be viewed as a process UNTO itself — it’s the foundation for everything the board and management do to properly govern the organization and make sound decisions. Many boards FRAME their activities for the oversight of risk into two areas: oversight of ENTERPRISE risk programs (risk management), and oversight of critical risks and risk decisions (risk governance). The latter includes setting risk appetite and risk TOLERANCES, and monitoring strategic risks and related trends.

Risk oversight should not be viewed as a process unto itself — it’s the foundation for everything the board and management do to properly govern the organization and make sound decisions. Many boards frame their activities for the oversight of risk into two areas: oversight of enterprise risk programs (risk management), and oversight of critical risks and risk decisions (risk governance). The latter includes setting risk appetite and risk tolerances, and monitoring strategic risks and related trends.