Original Source: COSO

“Boards of directors have become increasingly aware of their responsibilities related to effective oversight of management’s execution of enterprise-wide risk management processes. This is due, in part, to significant external pressures that have developed recently that are thrusting risk management and its oversight to the forefront of many board agendas and management action plans. For example, the New York Stock Exchange in 2004 adopted governance rules that require audit committees of NYSE-listed firms to oversee management’s risk oversight processes. In 2008, Standard & Poor’s began explicitly evaluating an issuer’s enterprise risk management (ERM) processes in seventeen new industries, as an additional component of their credit ratings analysis. In 2009, the Securities and Exchange Commission (SEC) expanded proxy disclosure requirements to increase information for investors about the board’s role in risk oversight. The 2010 Federal Financial Reform legislation now mandates risk committees for boards of financial institutions and other entities overseen by the Federal Reserve…”

Contributors: Open Source
Categories: SIG U Resource, Whitepaper
SRC Type: Risk Management, Sourcing Management, Third Party Management