Mitigating risk is a fundamental concern of every board because of the critical nature of not having the right processes in place to identify and categorize their risks. Boards face the challenge of correctly, thoroughly and routinely continuing to evolve in processes surrounding risk oversight. Although discussed frequently and a fixture in many boardrooms, risk is frequently touted as a high priority and significant concern amongst boards and directors. Having partnered with many boards, we understand the linkages between risk and strategy, recruiting, committee effectiveness and increasing value for shareholders. What we have found by working with our clients, is that establishing a common understanding of risk, defining risk for the organization and setting in place a process for mitigating that risk is one of the most important responsibilities that a board of directors has.
At XCEO, we are committed to the oversight of risk at the board level. In fact, our unique approach to risk is not only for the board, but for individual directors as well. Although the dialogue surrounding risk is fundamental to improved oversight, so too is applying data, constructive feedback and benchmarking analyses in order to better understand the risk mitigation progression. In an effort to help boards develop a clear and viable model for assessing risk, we have created the Board Risk ProfileTM (BRP) and the Individual Risk ProfileTM (IRP) assessments which recognize various risks at the board and director level.
Board Risk: Used in order to help the board acknowledge and prioritize risks, our board-initiated assessment provides detailed and thoughtful questions, highlighting areas where various risks are appreciated and where more attention could be spent on risk. An evaluation that produces three automatically generated reports available to the board, the information is provided to the board in a digestible, powerful and convenient way so that less time is spent collecting data, and more time spent on understanding risk and the development of relevant mitigation processes.
Director Risk: A personal, self-assessment of one's individual risk, this analysis is unique and exciting in that this is an effective way for each director to assess his or her own risks as a member of the board. Very different than the questions asked in the board risk assessment, this evaluation provides directors the opportunity to consider themselves and their peers in regard to risk. A compelling evaluation, many directors have not been presented the opportunity to truly gauge their own personal risk.
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2880 Lakeside Drive
Santa Clara, CA 95054