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Citation Reference: Communicating with the Board ¶ 1

Citation Guidance: Effective communication between the board of directors and management is critical for organizations to achieve the strategy and business objectives and to seize opportunities within the business environment. Communicating about risks starts by defining risk responsibilities clearly: who needs to know what and when they need to act. Organizations should examine their governance structure to ensure that responsibilities are clearly allocated and defined at the board and management levels and that the structure supports the desired risk dialogue. The board's responsibility is to provide oversight and ensure the appropriate measures are in place so that management can identify, assess, prioritize, and respond to risk (see Example 10.4).