The financial crisis exposed a multitude of risk management failures. At too many firms, risks were ignored, misjudged or misrepresented. Rosy scenarios and perverse incentives created risks that were catastrophic when the music stopped.
Where the board’s responsibility for risk management ends is anyone’s guess, but where the board’s responsibility for risk management begins is clear – the board must insist that management create and maintain a strong risk management culture throughout the company. FTI Consulting’s Dan Borge dives into this topic, explaining the benefits and attributes of a strong risk management culture.