Board Risk Oversight

Risk Consulting & Products

XCEO, along with our risk and audit partners, have developed modules for boards and for individual directors which get to the heart of the issues surrounding risk. We have designed exercises with supporting documentation and consulting which help a board understand how to mitigate risks and for directors on how to understand what their individual risks may be. An overview of each product is provided.

Risk Oversight Evaluation® (ROE)

The ROE was designed to help boards understand performance related risks through the identification of 12 Disciplines which should be in place to have an effective oversight process. It has been designed so that as each director evaluates each Discipline, supporting information is provided to assist the director in his or her evaluation of each point. As they think about each issue, directors can prepare their own reasons for why they evaluated their company the way they did on each Discipline, as well as, what actions are needed to strengthen those areas where they have concerns. This can then be used for valuable discussions amongst the board members as they assess the overall composite evaluation of each Discipline. As a result, the board can create an effective plan of attack in dealing with those areas of the oversight process which need further attention. This can then be used as a basis for future evaluations and comparisons to see how progress is being made to strengthen their oversight of risk management.

This exercise is initiated by, and results are received by, a pre-determined individual designated by the board and is fully automated providing flexibility to the directors as to when and where they complete their evaluation. Its simplicity of use allows for the director to think about the evaluation and not how to do the evaluation. While this product has been designed for use by the full board, the product will help the individual director in his or her knowledge and understanding of risk oversight.

Individual Director Risk® (IDR)

IDR has been designed to allow directors to identify, understand and assess risks at the individual level and present options as to how they can manage and mitigate their own individual risks. We have developed 16 specific risk indicators for directors to evaluate their role on the board. Prefaced by a concise and insightful discussion of the individual risks to each director, the IDR product allows a director to have knowledge to mitigate his risks. Due to their service on the board, directors are exposed to both financial and reputation risks if there are problems and, thus, it is important that each director evaluate and understand their risks regarding board service.

The IDR exercise is automated, initiated only by directors with the results made only available to the individual director. Results are immediately provided upon completion of the exercise. While this product has been designed for use by the individual director, the product is also available for the full board to provide to their directors as well.

Each of these products is delivered by an experienced and effective team whose understanding of risk oversight is handled from an audit, consultant, insider and financial expert perspectives. To learn more about the advantages of risk oversight consulting, click here.

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