The Southeast Audit Committee Network first spoke about enterprise risk in October 2005. Some things have changed: the primary source of contention is no longer, as VantagePoint noted then, “finding the best logical home for ERM efforts, be it the audit committee, the full board, or some other committee, such as governance or a special risk committee.” Directors have moved beyond that, in no small part because of the pressures from the credit crisis and the failures of several prominent companies. Enterprise risk has evolved into a collaborative process involving the board and management and utilizing internal and external advisers and resources. Members clearly recognize the importance of a robust enterprise risk program and the necessity of comprehensively and collaboratively balancing risk management with the growth of the enterprise. At the same time, the credit crisis underscores the continuing need for more effective ways to manage risk. The reality that risk will always be present and that its consequences are real leaves members continually searching for more effective risk management practices.
Read the full paper, published by Tapestry Networks and Ernst & Young.