Against the backdrop of one of the worst hurricanes to hit the eastern seaboard in a century, NACD convened its first Risk Oversight Advisory Council telephonically. During this abbreviated meeting, committee chairs dedicated to risk oversight at leading companies met to discuss and identify the current and emerging risks facing corporate directors.
This meeting demonstrates the need for constant discussion of leading practices in risk oversight. This Advisory Council on Risk Oversight is NACD’s fourth council, joining previously established ones on the audit, compensation, and nominating/governance committees.
Risk oversight needs to constantly be on the top of the board’s agenda. Given the rapid rate of technological change, directors have found it increasingly difficult to properly prioritize and allocate the multitude of areas requiring oversight. As such, similar to its predecessors, this advisory council will convene leaders of risk oversight to discuss and pinpoint the risks facing corporate boards currently and in the near future. Council delegates will also share and develop successful practices to assist boards in addressing their own risks.
With an abbreviated meeting, council delegates were able to address two topics: allocation of risk and addressing the new era of reputational risk oversight. Cybersecurity was included on the agenda, but slotted for discussion at a later date.
NACD is joined by partners PwC and Gibson Dunn in this Advisory Council on Risk Oversight. A shortened summary of proceedings from the meeting will be available this month.