Board directors may be turning to risk management practice

Corporate directors may be starting to take a more diligent role in imparting risk management, executive compensation and succession controls. According to a survey released this week by PricewaterhouseCoopers, only 19 percent of directors rate their board as effective in monitoring plans to reduce their organization's exposure to risk. However that figure has been rising, as investor demands and regulatory pressures have been mounting. Nonetheless, security is a growing concern, namely the ability of to protect customer data. Nearly half of directors claim their board's oversight of IT is less than effective, and even more - 53 percent - believe finding IT expertise is difficult. "Board members are serious about embracing change and are focused on identifying areas of risk and opportunity," said Don Keller, partner in PwC's center for board governance. "PwC's Annual Corporate Director Survey found that directors are willing to address and communicate about the concerns of key stakeholders." Sixty-seven percent of survey respondents were on boards representing companies with more than $1 billion in annual revenue.