Deloitte has released a report showing progress in how large public companies report their board’s role in risk oversight.
The new study follows up on a similar report from last year that identified risk oversight practices in response to new SEC requirements about risk disclosures in proxy statements. Using two years of data for 154 companies in the S&P 200, Deloitte found that the organizations that disclosed whether risk oversight and management is aligned with the company’s strategy increased by 6 percentage points to 45 percent in 2011.
In addition, companies that disclosed whether their CEO was responsible for risk management or how the CEO was involved also increased 6 percentage points to 34 percent in 2011. The number of companies disclosing that other board committees, besides the audit committee, was involved in risk oversight increased by 6 percentage points to 88 percent in 2011.
Deloitte noted that it views the work of improving risk oversight and management as a continuous and evolving process. As leaders carry on this work, it is important to embrace transparency around risk governance and management practices, and keep stakeholders informed.
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