When discussing how to improve the value contributed by risk management, we often are asked, “Where do we start?” At the heart of this question is the desire for a simple and practical point of view that makes sense in practice. While there is no one size that fits all solution, there are four foundational elements of risk management to consider.

These elements are intended to be flexible in application, which is essential because risk profiles vary in complexity across industries. In this issue of Board Perspectives: Risk Oversight, we examine the four elements that define what executives should assess when evaluating the role and effectiveness of risk management.