Easing Tensions at the Top
Owen Ryan byline in Financial Executive magazine
Many management teams and boards have become increasingly engaged in assessing and balancing the risks their enterprises face. This can heighten tension between management and the board, particularly as the board asserts or reasserts its risk oversight role. This tension is not new. It arises naturally, although it tends to escalate in times of heightened risk and economic turbulence.
When tension does escalate, it is best to be prepared to address it. Given that most risks ultimately translate to financial risks, financial executives are well-positioned to help the executive team and board members address this tension.
That means guiding and, at times, leading discussions of risk in the C-suite and with the board. It also means helping to develop the clearest possible picture of enterprise risk and risk management efforts.