The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Mon, 03 Aug 2026 20:38:55 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png Strategic Risk Management: A Primer for Directors – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 Strategic Risk Management: A Primer for Directors https://corpgov.law.harvard.edu/2012/08/23/strategic-risk-management-a-primer-for-directors/?utm_source=rss&utm_medium=rss&utm_campaign=strategic-risk-management-a-primer-for-directors https://corpgov.law.harvard.edu/2012/08/23/strategic-risk-management-a-primer-for-directors/#comments Thu, 23 Aug 2012 13:23:20 +0000 http://blogs.law.harvard.edu/corpgov/?p=32095?d=20150113140513EST Posted by Matteo Tonello, The Conference Board, on Thursday, August 23, 2012
Editor's Note:

Matteo Tonello is managing director of corporate leadership at the Conference Board. This post is based on an issue of the Conference Board’s Director Notes series by Mark L. Frigo and Richard J. Anderson, director and professor of strategic risk management, respectively, at DePaul University. This Director Note was based on a book authored by Dr. Frigo and Mr. Anderson, available here.

As noted by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), “In the aftermath of the financial crisis, executives and their boards realize that ad hoc risk management is no longer tolerable and that current processes may be inadequate in today’s rapidly evolving business world.” [1] However, especially for nonfinancial companies that may be relatively new to these topics, enhancing risk management can be a somewhat daunting task.

This article focuses on two key aspects of the relationship between risk and strategy: (1) understanding the organization’s strategic risks and the related risk management processes, and (2) understanding how risk is considered and embedded in the organization’s strategy setting and performance measurement processes. These two areas not only deserve the attention of boards, but also fit closely with one of the primary responsibilities of the board — risk oversight.

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