Boards Increasingly Prioritize Risk Oversight as a Full Board Responsibility
A new report from Ernst & Young highlights how boards of directors are shifting risk oversight to become a full board priority, rather than delegating it solely to audit or risk committees. According to the survey conducted with Corporate Board Member and involving 157 participants, 60% of board members said their full board has devoted more time to risk discussions over the past two years. This shift reflects growing complexity in corporate risk profiles and a need for better alignment between strategy and risk management. Despite this increased attention, many boards still lack formal documentation around risk appetite, with only 43% having it clearly articulated and documented across all sectors—dropping to just 30% when excluding financial services. The report emphasizes the importance of integrating scenario testing, understanding systemic risks, and aligning risk management with strategic goals. EY recommends that boards move beyond check-the-box compliance by embedding risk appetite into annual strategy discussions and ensuring full board engagement on key emerging threats.
Topics: Board of directors CFO responsibilities Risk management Strategic alignment