16 Aug. 2017 | Comments (0) Share
Download the current issue of Director Notes, entitled “Board Oversight of Long-Term Value Creation and Preservation: What needs to change?”
Enterprise risk management (ERM) stemmed from the laws and regulations of the last decade, with their focus on protecting the public and preserving shareholder value. It is rooted in a cautious approach of value preservation that, according to some critics, may lead the firm to miss long-term value creation opportunities. However, today’s large shareholders controlling trillions of dollars in investment assets are increasingly calling on CEOs to focus on such long-term value creation.
The report discusses whether boards receive from senior management the reliable information they need to meet these expectations. Could the existing approaches to ERM and internal audit be ill-equipped to promptly elevate to the board critical information on long-term strategy threats and prospects? If so, what can business organization do to fill the gap and develop a more objective-centric ERM?