Improve Board Risk Oversight
- TBI Protiviti® Board Risk Oversight Meter™ allows your board of directors to assess, improve and benchmark the effectiveness of your risk oversight processes. The Risk Oversight Meter helps your board be the best it can be in providing effective oversight to reduce risk, pursue opportunities, enhance resilience, discourage lawsuits and avoid critical mistakes. Most importantly, it allows directors to be confident that they are effectively overseeing risk.
- Only 32 percent of public company directors have a high level of knowledge and understanding of their board’s emerging risks. In an environment of constant, disruptive change, it is imperative that directors assist their companies with the prudent risk-taking that is essential to successful strategic execution.
- The Risk Oversight Meter helps directors and officers of public and private companies assess and enhance the effectiveness of their boards’ risk oversight by focusing on
- The boards’ structure and composition;
- The role of the directors regarding risk oversight, assessment, monitoring and response process;
- Alignment of risk and strategy;
- The leadership of the board; and
- Risk information provided to the board
- The keys to good boards are knowledge, transparency and accountability. The Risk Oversight Meter is the only evaluation tool that can provide this value, because it is the only board-driven, anonymous, confidential, educational and web-based evaluation tool to assess boards internally and against best practices.
- The independent, secure board evaluation is both quantitative and qualitative – essential to providing the substantive feedback your board needs. Questions, analysis and best practices were developed in partnership with Protiviti® and refined with directors and leading experts in risk, resilience, and corporate governance.
Improve Performance – Our report establishes a baseline and benchmark against internal metrics, best practices and peers to continually upgrade your board’s risk oversight.
Respond to Key Metrics – Our Risk Oversight Meter is customizable for your company and situation, to incorporate key metrics, so that your board is the best it can be in overseeing risk.
Fulfill Annual Evaluation AND Director Education Mandates
Make Better, Clearer Decisions – Our process helps directors identify and understand strengths and areas to improve.
Avoid Mistakes – Contrary to other approaches, TBI’s management of the Risk Oversight Meter is objective, independent, and comprehensive. With complete security, anonymity and confidentiality, directors can answer freely and candidly, resulting in a valid, actionable report.
Recognize and Respond to Emerging Regulations – TBI works with Protiviti to proactively integrate the changing governance practices, laws and regulations into our Risk Oversight Meter.
Reduce Risk – Optimize insurance coverage and help ensure comprehensive risk oversight.
Validate Your Board’s Risk Oversight Process – to your Constituencies and the Financial Markets.
- Help ensure prudent risk-taking that is so essential to successful strategic execution and market success.
- Utilize a tool that mirrors the way directors like to conduct evaluation
- Easy to use and fast
- Cost effective
- Anonymous and confidential
- May be facilitated in-house or by an outside party
- Drives continuous improvement in board risk oversight
- Obtain a robust, insightful and actionable report highlighting strengths and areas for improvement, best practices, anonymous commentary, and important statutory and regulatory requirements
- Validates the quality of risk oversight to the markets and key constituencies for public and private companies
How does it work?
The Board Risk Oversight Meter is a user-friendly process that can be facilitated internally or by an outside party who works with the board to develop an action plan to respond to any issues raised.
Step 1: You select a “board administrator” who sets the timetable and invites participants. Board members (and others, at the board’s discretion, such as members of your company’s Risk Committee who do not serve on the board), anonymously, confidentially, and securely complete a comprehensive, online questionnaire. This takes approximately 15-20 minutes. Upon completion, drawing on scientific methodology, the completed questionnaires are automatically compiled and scored.
Step 2: A report of the results and analysis is immediately available to your board evaluation administrator and other key stakeholders, as the board determines appropriate, either on line or on paper. The report, which is a composite and provides no identifying information about individual respondents or the company, consists of:
- An overall Oversight Risk Meter tally, a feedback summary of board structure and composition, the role of the directors, and leadership of the board.
- Top five strengths, the five areas to improve and the five areas where there is the greatest divergence of views.
- A detailed inventory of specific questions with scores, ranges, comparisons and anonymous comments, together with targeted best practices, stock exchange requirements, regulatory rules and relevant legal mandates.
It is as simple as that!
EXPERT ADVISORY COUNSEL
Managing Director, Public Affairs & Crisis, and Chair, U.S. Crisis Practice, Burson-Marsteller
2015 “Crisis Manager of the Year” by the PRNews “PR People Awards”.
Chairman, The Lovell Group; Co-Founder, Principal Executive Officer, American Management Systems, Inc. (AMS); Director, Capital One Financial Corporation, Waste Management, Inc., Rosetta Stone, Inc, Liquidity Services, Inc., and Career Education Corporation; Former Chairman, Baker & Taylor, Inc,. Aegis Corporation, Core Street, Inc; a board member of more than 24 public and private companies.; National Association of Corporate Directors’ “Directorship 100: list.
Senior Managing Director, Brock Capital Group LLC
Chairman, ProLink Solutions, Inc. former, Executive Vice President, Risk, and Chief Administrative Officer at CA Technologies, Inc., Global Risk Officer, Prudential Financial, Inc., Director, Business Risk at Deloitte & Touche LLC
President, James Lam & Associates, Inc.
Independent Director, Chair-Risk Oversight Committee, Member-Audit Committee, E*TRADE Financial
NACD Board Leadership Fellow and Risk Faculty
Author: Enterprise Risk Management (Wiley, 2rd Edition, 2014), GARP Inaugural Risk Manager of the Year (1997)
Partner – IBM Security
Former: managing director, Cyber, KPMG US, President, Qubera Solutions, Int’l Channel Manager, Sun Microsystems; Regional Vice President – Data Security & Identity Management Sales, Oracle
Senior Managing Director, Protiviti®
Our appreciation to the other experts who provided valuable input and prefer to remain anonymous.
CREATIVE MANAGING TEAM
Managing Director, Protiviti®, Inc
Author: “Enterprise Risk Management: Linking Risk and Opportunity”; National Association of Corporate Directors’ “Directorship 100” list of most influential governance professionals in the boardroom community.
Founder/CEO, The Board Institute, Inc., Founder SSA Executive Search Int’l/INAC Global
Author: The Board Book, Making Your Corporate Board a Strategic Force in your Company’s Success
Principal, The Board Institute, Inc.
Former CEO: The Eisenhower Foundation, The American Assembly, The Royal Institution World Science Assembly; Risk management/resilience systems in major corporations (e.g. Xerox, BP, Unisys, IBM, General Foods etc.), Attorney