The boards of major public companies in the U.S. may be looking to spend more time on effective risk management practices in coming years, according to a survey released Tuesday by accounting firm BDO USA.
When asked what areas boards need to spend more time, 55 percent of board members at public companies pointed to risk management, more than any other concern, including credit decisions
. This may prompt some boards to create C-level risk management positions, as 53 percent of respondents claimed they do not have a chief risk officer. More than two-thirds claimed they don't even have a risk management committee. "In recent years, the responsibilities of corporate boards have grown considerably and much of their time has been dedicated to responding to new regulatory requirements," said Wendy Hambleton, partner in the corporate governance practice at BDO. "Risk management has certainly played a role in those activities, but only from a compliance standpoint." Increasingly, Hambleton added, boards are willing to take a leading role in the risk management process, and it seems to stem from the risk they face as directors.