PwC’s Q3 audit committee newsletter suggests audit committees charged with primary responsibility for risk oversight regularly assess their oversight capacity and effectiveness in the context of the increasing number and complexity of new and evolving risks, which include COVID-related or prompted risks (e.g., health and safety, competition, business strategy, workforce, corporate culture, technology), climate, cybersecurity and privacy, regulatory, and macroeconomic risks, natural catastrophes, political risks, and more. Among other things, the firm suggests companies consider whether any risk oversight responsibilities should be reallocated across the board and its committees; prioritize key risks on the meeting agenda to ensure sufficient coverage; and ensure that management’s enterprise risk management process includes consideration and ownership of emerging risks and associated mitigation strategies.
See our recent report: “Board Risk Oversight: Here's How” and additional resources on our Risk Management & Oversight and Audit Committees pages.
This post first appeared in the weekly Society Alert!