An enterprise risk assessment(ERA)is a systematic and forward-looking analysis of the impact and likelihood of potential future events on the achievement of an organization’s business objectives within a stated time horizon. An effective enterprise risk assessment process lays the foundation for management to respond with confidence to the question, “What are our most critical risks?” It also instills confidence in the board of directors that management has a basis for answering the question.

In this issue of Board Perspectives: Risk Oversight, we take a deep dive into the key considerations to take when engaging in the enterprise risk assessment process.