Discussion Managed Care: Role of Boards in Lowering Organizational Risk Profile

Role of Boards in Lowering Organizational Risk Profile
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Role of Boards in Lowering Organizational Risk Profile
Enterprises continually face the risk of unprecedented events with the potential for adversely affecting their operations. With for-profit enterprises, unmanaged risks may negatively impact on an organization’s profit level. On the other hand, similar risks may affect some other aspects of an organization such as the corporate image or public goodwill. Ultimately, lowering an enterprise's risk profile takes priority for both non-profit and for-profit enterprises.
As regards reducing an organization’s risk profile, the board’s primary and perhaps the most crucial role is risk oversight (Brodeur et al., 2010). The oversight function involves the process of identifying, consolidating and prioritizing potential risks. While so doing, the board examines enterprise-wide risks to unearth their critical drivers. Such efforts provide the board with crucial insight, preparing it to execute its obligations. These include estimating the impact of risks and designing suitable strategies to limit their effects, especially when unforeseen events occur in tandem (Brodeur et al., 2010).
While most boards play an over...