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Mastering board reporting: Essential insights for effective risk communication
Explore the critical components of effective board reporting for risk communication, highlighting the importance of systematic processes, regulatory compliance, criteria for board-level concerns, and the challenges firms face in maintaining proactive risk management and alignment with strategic objectives.
May 31, 2024
Karina Volvovsky
Karina Volvovsky, Senior Vice President, Business Control Officer for Entertainment, City National Bank
Mastering board reporting: Essential insights for effective risk communication

  • Effective board reporting must clearly communicate risk.

  • Supervisory boards need to work with management to establish systematic and sustainable risk reporting processes.

  • Staying updated with evolving regulatory requirements is crucial for complex and global organizations.

  • Structures should be in place to adapt to changing non-financial risk expectations.

  • Standardized reporting ensures consistency and transparency as mandated by regulatory frameworks.

  • Firms operating in multiple jurisdictions face challenges navigating different regulatory requirements.

  • Risks should be evaluated for board-level concern based on impact, strategic significance, regulatory risk, and ethical considerations.

  • The board's role is to provide high-level oversight and guide the organization through major risks.

  • Creating effective board approval processes involves overcoming challenges like comprehensive risk management and aligning with strategic objectives.

  • Significant investment in resources and discipline is necessary for proactive risk management.

  • Board reporting practices have evolved, showing increased sophistication and professional growth in governance.

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