Christoph Van der Elst

The Risk Management Duties of the Board of Directors

WP 2013-02

The board of directors is responsible for an appropriate business risk management environment. The paper studies in a comparative way how legislators and courts fill this duty. We question whether the legislative and regulatory framework will improve the equilibrium between entrepreneurship and risk control. We advocate for a distinct approach for strategic and operational risk management, defining risk appetite and tolerance and sufficient monitoring. We also call for full and detailed reporting and compliance risk management.