CEO-to-CEO – Top 5 Questions CEOs Should Ask Themselves & Board About Risk Management
Governance is usually defined as a system of processes and controls that ensures that stakeholder needs, conditions and options are evaluated to determine balanced, agreed-upon enterprise objectives to be achieved; setting direction through prioritization and decision making; and, monitoring performance and compliance against agreed-upon direction and objectives.
Risk Management Governance is a strategic business practice area that is part of overall governance and ensures that:
- Risk management activities align with the enterprise’s opportunity and loss capacity and leadership’s subjective tolerance of it; and,
- The risk management strategy is aligned with the overall business strategy
In this brief post in my CEO-to-CEO series, I invite CEOs to raise and discuss these five important questions in their next board meeting:
- To what extent of has the board issued guidance for risk management?
- To what degree is there awareness of external requirements for risk management in the organization?
- To what extent do senior executives held responsible to consider all aspects of risk in their decisions?
- To what degree is there recognition of the need to actively manage risk in the organization?
- To what degree has the Board defined the organization’s risk appetite and risk tolerance across the risk universe?
Most directors recognize that risk management governance is a critical responsibility of the board. This involves ensuring that management has a process in place for identifying key risks and an approach to mitigate these risks to an acceptable level. If these risks are not properly identified and managed, there can be significant ramifications, affecting the company’s brand, bottom line, and ultimately, shareholder value.
In this current climate, it’s an absolute necessity that CEOs and their Boards become actively involved in business risk management in general and information risk management in particular. The questions above provide a good starting point for discussion.
HIPAA Privacy, Security and Compliance Risk Management Resources Available to You
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Please avail yourself of any of these free resources which you may access now by clicking on the links below:
- Risk Analysis Buyer’s Guide
- Clearwater Compliance White Paper: Risky Business: How to Conduct a Bona Fide HIPAA Security Risk Analysis
- Clearwater Recorded Webinar event entitled How to Conduct a Bona Fide HIPAA Security Risk Analysis
- Clearwater HIPAA Security Risk Analysis™ software DataSheet
- Clearwater HIPAA Security Risk Analysis™ software Free Trial for qualified organizations
- AboutHIPAA.com Risk Analysis Resources
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