Criterion
MEDIA, JOBS & RESOURCES for the COMMON GOOD
NEWS  |  Corporate Engagement, Good Business, Leadership

Directors Concerned With Risk Oversight – Report


Wednesday, 22nd October 2014 at 9:23 am
Lina Caneva, Editor
Corporate boards in the US are giving more attention to their risk oversight responsibilities, while most boards are still not discussing corporate social responsibility issues, according to PwC’s 2014 Annual Corporate Directors Survey.

Wednesday, 22nd October 2014
at 9:23 am
Lina Caneva, Editor


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Directors Concerned With Risk Oversight – Report
Wednesday, 22nd October 2014 at 9:23 am

Corporate boards in the US are giving more attention to their risk oversight responsibilities, while most boards are still not discussing corporate social responsibility issues, according to PwC’s 2014 Annual Corporate Directors Survey.

And directors say they are less comfortable with their understanding of their company’s risk appetite.

The PwC report said that looking to some less traditional boardroom topics, three-quarters of directors say they are not currently having substantial discussions about corporate social responsibility issues such as human rights and climate change.

However, the survey found these discussions are most likely to occur in the boardrooms of mega-cap companies.

The survey of 863 public company directors was conducted in the summer of 2014. Of those respondents, 70 per cent serve on the boards of companies with more than $1 billion in annual revenue.

“It was not a surprise that strategy and risk remain top-of-mind for public company boards of directors,” Mary Ann Cloyd, Leader for PwC’s Center for Board Governance said.

The PwC report highlights director sentiments related to these particular trends:

Directors are less comfortable with their understanding of the company’s risk appetite; 51 per cent say they understand the company’s risk appetite “very well” – over ten percentage points less than two years ago.

  • Over 90 percent of directors are at least somewhat satisfied with the information they get to fulfill their strategic oversight responsibilities. However, in some areas there is room for improvement. More than one-quarter of directors are either dissatisfied or do not receive information on competitor strategy and customer satisfaction research.
  • Over 70 per cent of directors say they made changes to their approach to fraud risk over the last 12 months. The most common actions were holding board discussions of “tone at the top,” increasing the amount of time spent on board discussions of risks embedded in compensation plans and having board members interact with members of management below the executive level.
  • While a number of organisations have identified issues like sustainability and climate change as societal imperatives about three-quarters of directors say they have not had substantial discussions about human rights, climate change, carbon emissions and resource scarcity.
  • Over the last three years, directors have become more comfortable with the allocation of specific responsibility for overseeing major risks between the board and its committees. In 2014, 84 per cent said there was a clear allocation of responsibility, up from to 80 per cent in 2013 and 63 per cent in 2012.

The survey findings specific to directors’ views of strategy and risk oversight, go to: www.pwc.com/us/directorssurvey.

 


Lina Caneva  |  Editor  |  @ProBonoNews

Lina Caneva has been a journalist for more than 35 years, and Editor of Pro Bono Australia News since it was founded in 2000.


Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au


Write a Reply or Comment

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

Wealthy US Investors Turning to Impact Investment

Luke Michael

Monday, 10th September 2018 at 5:12 pm

Trump Sued For Using Charity as ‘Little More Than A Checkbook’

Wendy Williams

Monday, 18th June 2018 at 5:09 pm

In Conversation: Sara El-Amine

Wendy Williams

Thursday, 22nd March 2018 at 8:34 am

US Rage Philanthropy Dies Down

Wendy Williams

Friday, 9th March 2018 at 5:31 pm

POPULAR

Family Faces ‘Devastating’ Loss of Support for Son with Disability

Luke Michael

Tuesday, 11th September 2018 at 8:37 am

$50 million Up For Grabs to Help NFPs Drive Change

Maggie Coggan

Monday, 17th September 2018 at 4:21 pm

Social Economy is the Workforce of the Future

Luke Michael

Thursday, 6th September 2018 at 8:21 am

Australia’s Most Innovative NFPs Highlighted

Luke Michael

Thursday, 13th September 2018 at 8:41 am

Criterion
pba inverse logo
Subscribe Twitter Facebook

The social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!