Many companies have adopted a risk language or taxonomy to facilitate an ongoing dialogue regarding their risks. With respect to board risk oversight, the question arises as to whether directors should adopt their own risk language to ensure they are covering the bases and focusing the oversight process. If the board of directors is mired in the minutiae of risk management, the oversight process lacks the necessary focus to be effective.

While each board must decide for itself whether such a language is useful given the nature of the enterprise’s operations, we explore five risk categories directors may want to consider in this issue of Board Perspectives: Risk Oversight.